Australia is poised for significant changes to its tax framework with a new capital gains tax set to take effect on July 1, 2025. This law will target unrealized profits over $3 million AUD (approximately $2 million USD), affecting a wide range of assets, including cryptocurrencies and stocks. The government has implemented this tax measure, which could reach up to 15%, to address budget shortfalls.
The policy, referred to as "landmark" by analysts, will also influence how investors manage their portfolios. For instance, David Schwartz, CTO of Ripple, suggested that investors might consider leveraging their paper gains as loan collateral instead of liquidating assets.
In conjunction with this tax reform, Australia's financial watchdog, AUSTRAC, has set a daily limit of $5,000 AUD (around $3,250 USD) on transactions made through crypto ATMs. This move aims to protect consumers, particularly those over 50 years old, amidst a rise in scams targeting this demographic. AUSTRAC CEO Brendan Thomas emphasized the need for increased transparency and market integrity following reports revealing that a staggering 72% of scam-related crypto transactions were linked to older individuals.
Criticism of the new tax law has surfaced from various quarters. Tom Lee, Chief Investment Officer at Fundstart Capital, labeled the policy as an "insanely bad idea," projecting potential risks of diminishing investor confidence and curtailing investment inflows into the country.
The recent rise in reported crypto fraud, exceeding 150 cases and resulting in over $3 million AUD in losses, has prompted these reforms. As the landscape shifts starting mid-2025, investors should brace for a more regulated financial atmosphere, which may alter strategies across both crypto and traditional markets.
The policy, referred to as "landmark" by analysts, will also influence how investors manage their portfolios. For instance, David Schwartz, CTO of Ripple, suggested that investors might consider leveraging their paper gains as loan collateral instead of liquidating assets.
In conjunction with this tax reform, Australia's financial watchdog, AUSTRAC, has set a daily limit of $5,000 AUD (around $3,250 USD) on transactions made through crypto ATMs. This move aims to protect consumers, particularly those over 50 years old, amidst a rise in scams targeting this demographic. AUSTRAC CEO Brendan Thomas emphasized the need for increased transparency and market integrity following reports revealing that a staggering 72% of scam-related crypto transactions were linked to older individuals.
Criticism of the new tax law has surfaced from various quarters. Tom Lee, Chief Investment Officer at Fundstart Capital, labeled the policy as an "insanely bad idea," projecting potential risks of diminishing investor confidence and curtailing investment inflows into the country.
The recent rise in reported crypto fraud, exceeding 150 cases and resulting in over $3 million AUD in losses, has prompted these reforms. As the landscape shifts starting mid-2025, investors should brace for a more regulated financial atmosphere, which may alter strategies across both crypto and traditional markets.
