With Australia set to levy a 47% capital gains tax on crypto gains, investors are exploring relocation, company structures and other strategies to protect their portfolios.
Australia is preparing to raise its capital gains tax (CGT) on long‑term cryptocurrency profits to 47% beginning in July 2027, prompting a wave of discussion among crypto holders about how to mitigate the impact. The proposed hike, which applies to gains after adjusting for inflation, would make Australia one of the highest‑tax jurisdictions for crypto investors, according to Cointelegraph.
Moving abroad is emerging as the most drastic, yet potentially effective, response. Countries such as Singapore, Portugal, Malta, the United Arab Emirates and Hong Kong currently impose no CGT on crypto gains, positioning themselves as attractive destinations for high‑net‑worth investors. Founder of Finder.com, Fred Schebesta, recently relocated to Singapore, citing the tax advantage as a primary factor. Collective Shift founder Ben Simpson confirmed that several of his members have already “packed up” for jurisdictions like the Bahamas, though he warns that a genuine break from Australian residency is required to qualify for the tax exemption.
Leaving Australia is not without financial penalties. Adrian Forza of Crypto Tax Australia notes that departing residents face an exit tax on unrealised crypto gains, which can be substantial. The case of “Bitcoin Jesus” Roger Ver, who paid nearly $50 million in exit taxes after a U.S. residency change, is frequently cited as a cautionary example. Forza explains that the exit tax is calculated on the full market value of the assets at the time of departure, meaning investors may need to liquidate a portion of their holdings to meet the liability.
For investors unwilling to uproot their lives, structuring crypto holdings through a company or a self‑managed super fund (SMSF) offers partial relief. A company taxed at the 25% corporate rate can cap CGT exposure, though dividends drawn by shareholders are still subject to personal marginal tax rates, which can rise to the same 47% level. SMSFs provide the most favourable tax treatment but lock assets for decades, making them suitable mainly for older investors or those comfortable with long‑term illiquidity. Both approaches require registration with ASIC, ongoing accounting, and compliance with Australian tax reporting rules.
The Australian Treasury is expected to release the final draft of the crypto tax bill later this year, which may clarify the exit‑tax mechanism and any exemptions for small investors. Market observers will also monitor migration trends to zero‑tax jurisdictions and the uptake of corporate structures among younger traders. Finally, any guidance from the OECD on international crypto tax reporting could influence how Australia enforces its new rates.
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