Labor’s controversial tax plan for superannuation accounts over $3 million has not only faced backlash from Australia’s VCs but parts of the cryptocurrency industry too.
The plan, which includes doubling the tax rate and taxing unrealised capital gains, is being taken as an ominous sign about the government’s approach to crypto, says Magnet Capital co-chief investment officer Egor Sidelska, as it suggests the government is not eager to encourage “risk-adjusted bets”.
"The investors we're talking to are not overly excited that this is the crypto government," said Sidelska, whose fund manages around $60 million in digital assets. "In fact, it's quite the opposite. They're saying, 'we were hoping for some relief, but it doesn't look like it'."
That pessimism may prove to be misplaced. In March, the Albanese government issued a six-page "statement" detailing its intentions to create clear rules for exchanges and stablecoins, and push initiatives that "safely unlock the potential benefits of digital asset technology".
