Australia Introduces 15% Tax on Unrealized Capital Gains

• Lyla Velez
• June 3, 2025
• Uncategorized
• 0 Comments

Australia has instituted a 15% capital gains tax on unrealized profits exceeding $3 million AUD, applying to crypto and traditional assets,
according to recent regulatory updates.

Analysts warn the tax could deter investment in Australia, impacting both digital and traditional asset holders.

Strong reactions emerged following Australia’s announcement of a 15% capital gains tax on unrealized profits over $3 million AUD, affecting cryptocurrencies and traditional assets.
The policy impacts high-net-worth individuals and investors significantly.

The Australian Taxation Office and AUSTRAC are central to implementing these changes. AUSTRAC has also set a $5,000 AUD limit on crypto ATM transactions to reduce scams, impacting fiat on-ramps.
Learn more about the concerns regarding cryptocurrency ATM scams here.

Experts predict possible investment outflows and changes in asset management strategies.
Fred Krueger, a noted analyst, described the measure as “landmark” with broad implications for residents.

Market confidence could be affected as this tax potentially alters investment strategies for both high-net-worth individuals and institutional investors.
Concerns over long-term growth impact have been voiced by industry figures such as Tom Lee, who called the tax an “insanely bad idea” that could “shrink investment inflows and damage long-term growth.”

David Schwartz of Ripple suggests loan collateralization using appreciated assets to avoid immediate tax liabilities, signaling a possible shift in investment behavior.

Investors may explore alternatives like utilizing assets as loan collateral to handle the new tax implications.
Historical trends suggest potential for capital migration and reduction in local crypto engagement.
Previous proposals of similar taxes in other countries were met with significant resistance.