As Australia’s financial year ends on June 30, 2025, sweeping changes are set to take effect starting July 1. A new tax law will significantly impact capital gains, especially for high-net-worth individuals, and is expected to reshape how investors manage both traditional and digital assets.
A major policy shift, dubbed “landmark” by analyst Fred Krueger, introduces a capital gains tax on unrealized gains for the 2025–2026 fiscal year. This new rule will apply to assets exceeding 3 million AUD (about US$2 million), including stocks, real estate, and digital assets like Bitcoin.
The tax—up to 15%—will apply even if the gains exist only on paper and have not been realized by selling the assets. The rationale? Officials argue these taxes are essential to fill budget gaps.
Ripple CTO David Schwartz offered a long-term strategy, suggesting that investors could use their appreciated assets as loan collateral rather than liquidating them.
Backlash From Experts
The move has not gone unchallenged. Critics warn it may reduce investor confidence and harm Australia’s economic appeal.
Tom Lee, Chief Investment Officer at Fundstart Capital, condemned the policy, calling it an “insanely bad idea” that could shrink investment inflows and damage long-term growth.
In parallel with the new tax law, Australia’s Financial Intelligence Agency, AUSTRAC, has rolled out new rules to tackle the rising threat of crypto scams. A new limit of 5,000 AUD (about US$3,250) per transaction is being implemented for crypto ATMs.
The change comes after alarming statistics revealed that 72% of crypto transactions involved in scams were made by individuals over the age of 50.
AUSTRAC CEO Brendan Thomas stated that the updated rule will enhance transparency, safeguard consumer rights, and maintain market integrity.
Over the past year, Australia has reported more than 150 crypto fraud cases, resulting in over 3 million AUD in total losses. The new set of reforms—capital gains tax on unrealized profits and ATM transaction limits—signals a strong regulatory stance aimed at protecting consumers and financial stability. Investors in both traditional and digital markets must now prepare for a more closely monitored and taxed financial environment starting July 1.
Yes, cryptocurrencies are legal to buy, sell, and use in Australia. They are treated as property for tax purposes, not legal tender.
Starting July 1, 2025, unrealized gains on crypto over 3M AUD face up to a 15% tax. Realized gains (selling, trading, etc.) are taxed at income tax rates, with a 50% CGT discount for assets held over 12 months.
Officials state the unrealized gains tax is needed to fill budget gaps and address financial stability, though critics warn of reduced investor confidence.
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