Friday brought a meeting of the Australian Treasurer and the FinTech Advisory Group to discuss the development of innovation in the financial services sector more extensively. Among the topics was also blockchain technology and the end to the double tax for digital currencies, including bitcoin.
The discussion brought many important topics on the table as the above mentioned blockchain technology. Here, the government reiterated “its intention to stop the ‘double taxation’ of digital currencies under the GST regime.”
Now Australian consumers are still ‘double taxed’ in case of using digital currency for any kind of purchases, which are subjects to Goods and Services Tax (GST). The Australian Tax Office (ATO) does not see bitcoin and other cryptocurrencies money as different category.
“They’re treated as assets for capital gains tax purposes, making them more like a barter arrangement,” according to the ATO. “When receiving bitcoin in return for goods and services, a business may be charged GST on that bitcoin.” However, as the official press release stated, “the Advisory Group has already made some real progress working with government.”
the Australian government informed in March that it is committed to end such unfair treatment of digital currency finally. Following the announcement Australia’s Treasurer, Scott Morrison, released a discussion paper on the GST treatment of digital currency in May.
The government has been assessing the way how it can end double taxation of digital currencies since the announcement. With the discussion paper, he invited interested parties to submit feedback and comments on the design of the proposal to address the GST issue. The closing date for submissions was June 3, 2016.
The Australian government has always been acknowledging the popularity of bitcoin as a method of payment. Its Digital Currency Guide says: “Digital currencies such as Bitcoin are an increasingly popular option for accepting and making payments in Australia.”
Generally, the Australian government is committed to “play a central role in aiding the positive transformation of our economy,” their announcement added.
For any questions or recommendations, feel free to write us on hello@goforex.eu
