Australia Introduces New Tax on Unrealized Crypto Gains: What You Need to Know. By ChainFabricNews

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Image source: Coin Edition

Starting July 1, 2025, a major change has arrived for crypto investors in Australia. The government has introduced a new capital gains tax (CGT) rule that affects individuals with over $3 million AUD in assets—including digital assets like Bitcoin, Ethereum, and other cryptocurrencies.

But what makes this tax different from before? It’s not just about the gains you make when you sell. Now, the Australian Taxation Office (ATO) wants to tax “unrealized gains”—which means even if you haven't sold your crypto, you could still owe tax on the increase in its value.

Let’s break it down and see what this means for crypto holders.

What Are Unrealized Gains?

Imagine you bought 5 Bitcoin a few years ago for $20,000 AUD each. Today, they’re worth $100,000 AUD each—but you haven’t sold them. In the past, you wouldn't owe any tax until you actually sold the coins.

Under this new rule, if your total assets (including crypto, property, shares, etc.) exceed $3 million, the ATO can now tax you based on the increased value, even if your assets are just sitting in your wallet.

That’s what they mean by taxing unrealized gains.

Who Will Be Affected?

This rule targets high-net-worth individuals, but crypto investors are among those most impacted. With Bitcoin’s price rising and the growing popularity of altcoins and NFTs, many investors have seen their portfolios grow rapidly.

If your combined assets cross the $3 million threshold—even if it's mostly crypto—you could now be required to pay up to 15% in tax on those gains, each financial year.

Why Is This Happening?

The government says the move is part of a broader push to balance the budget and ensure fairness. As digital assets become more common, the ATO wants to make sure wealth held in crypto isn’t used as a tax loophole.

Critics, however, argue that taxing unrealized gains is unfair—especially in a market as volatile as crypto. Prices can rise and fall quickly, meaning investors could be taxed on value that vanishes months later.

What Can Investors Do?

If you’re a crypto investor with significant holdings, now is the time to review your portfolio and talk to a tax professional. Some investors are:

  • Moving assets into trusts or company structures

  • Taking loans backed by crypto instead of selling

  • Rebalancing portfolios to stay under the threshold

It’s also wise to stay informed. The ATO is expected to provide more detailed guidelines in the coming months.

Final Thoughts

This new tax law signals a shift in how Australia treats crypto—not as a “side hobby,” but as a serious financial asset. Whether you agree with it or not, the reality is clear: regulations are tightening, and staying ahead of the curve is more important than ever.

If you’re involved in crypto and your portfolio is growing, now’s the time to get smart, stay informed, and plan ahead.

 

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