Australia Implements New 15% Capital Gains Tax on Crypto

TLDR

• 15% tax on unrealized profits over $3 million AUD.
• New $5,000 AUD limit on cryptocurrency ATM transactions.
• Reporting due by October 31, 2025, for taxpayers.

Australia has announced a significant shift in its tax policy, set to impact crypto investors as well as those holding traditional assets. Starting July 1, 2025, the government will impose a 15% capital gains tax on unrealized profits that exceed $3 million AUD. This applies to cryptocurrency, stocks, real estate, and other digital assets.

Additionally, the Australian Transaction Reports and Analysis Centre (AUSTRAC) has introduced a new limit on cryptocurrency ATM transactions. Users will face a $5,000 AUD cap per transaction, a measure aimed at reducing fraud, especially among individuals over 50 years old. A detailed report on the impact of ATM scams can be found on the Australian Federal Police’s website.

Expert Opinions on New Tax Measures

The tax changes have sparked varied reactions from industry leaders. Tom Lee, Chief Investment Officer at Fundstart Capital, criticized the move. He stated, “This is an insanely bad idea that could shrink investment inflows and damage long-term growth.”

Meanwhile, Ripple’s CTO, David Schwartz, pointed out a potential workaround for affected investors. He suggested using appreciated assets as collateral for loans rather than selling them outright. This option might help limit taxable gains from the new policy.

This is an insanely bad idea that could shrink investment inflows and damage long-term growth.

Tom Lee, Fundstart Capital

Timeline and Reporting Requirements

The newly introduced tax regulations will take effect on July 1, 2025. As Australia’s financial year ends on June 30, taxpayers will need to report their capital gains and income from crypto investments by October 31, 2025. More details on reporting can be accessed through the official Australian Taxation Office (ATO) website.

Given the nature of the unrealized gains tax, it is primarily aimed at high-net-worth individuals. The government’s objective is to address budget deficits, as stated by several officials. Yet, this decision has raised concerns about potential decreases in international investment appeal.

Broader Regulatory Landscape and Future Developments

This tax change is part of a broader adjustment in Australia’s regulatory landscape concerning cryptocurrencies. A high-profile court ruling in May 2025 challenges aspects of Australia’s existing crypto tax laws. Such decisions could influence the Australian Taxation Office’s handling of these matters in future.

High-net-worth individuals who hold assets exceeding 3 million AUD are the primary target for this tax. Meanwhile, investors may explore options like using loan collateral strategies to manage tax implications better.