r/BitcoinAUS

TLDR; My tax bill literally DOUBLES under proposed CGT changes.

Hi everyone, I just wanted to take a moment to share my research regarding the upcoming CGT changes that have been floated in the media over the last week.

Please keep in mind that these changes aren’t finalised so it’s speculative but still a MUST READ for early Bitcoiners or even shitcoiners who’ve had large wins.

According to Nine news papers; The current preferred CGT reform will be based around the Pre-1999 Howard era CGT system which adjusts the value of the COST BASIS for inflation and does away with the 50% capital gains tax discount we currently enjoy.

Let me elaborate with examples.

Under the current system, I can sell a Bitcoin I bought 15 years ago at $1 for $100,001 giving me a $100,000 profit. I apply the 50% discount and I’m left with $50,000 which gets taxed at my nominal tax rate (in my case) 47%

In total, I’m taxed about $23,500 in tax for $100,000 in Bitcoin I sell.

Under the Pre 1999 system (The system currently favored as the system most likely to be reintroduced) I’d sell my $1 Bitcoin for $101,000 and then I’d adjust the cost basis for inflation. It would be about $1.56 at 3% per year (compound adjusted)

That would mean I’d be getting taxed on a profit of $99,998.44 and would pay a total tax bill of $46999.27 for every $100,000 of Bitcoin I sell.

My tax bill literally DOUBLES under the proposed new system.

Now look, I want to be VERY clear that I’m not making and judgments on weather or not I think the current system is fairer that the other or not. That’s not what this post is about, the point of this post is simply to share the research I’ve done with people in a similar position to me so that you can begin to start war gaming the best way forward from here.

Hey guys, father recently passed away and left me his ledger. I have full access to this and hold the seed phrase etc. I already have possession of everything and we are starting to go through probate. My understanding is because I have possession of the wallet and seed phrase, there is nothing left to do to “transfer” it to myself. He has no online accounts that hold bitcoin, it’s just the wallet.

So my question: Is there anything linking his ownership to the bitcoin and the ledger that would mean solicitors need to get involved? Couldn’t exactly find a concrete answer for this and the executor of the will seems to think it works like a bank account which is tied to identity. From my understanding the only way you could tie his identity to the wallet is a purchase receipt at a stretch. Any help is much appreciated!

Thanks guys!