Hmmm -- is this the end of BTC in AUS? !! Furious !!

[ErnieX]

Bitcoin is perfect as assetclass and it does nothing bad. It only confirms regulators accepting it then more businesses will get involved because now it's clear how to do taxes.

[AFlatMinor]

If you have to pay tax on BTC earnings and you are mining BTC can you therefore claim the expense as a tax deduction?

[ErnieX]

It's in every country different. But profit from trading in most should be treated like trading in commodities.
Mining is more like an industry so your equipments are machines/inventory.

[101111]

If you have to pay tax on BTC earnings and you are mining BTC can you therefore claim the expense as a tax deduction?

Yes, generally speaking, all expenses related to earning the income are deductible.

[gtraah]

http://www.cryptocoinsnews.com/news/australia-bitcoin-tax-good-average-joe/2014/08/21 possible good news... guys we should&nbsp; comment .. check the last paragraph on article.. ato will look to asjust things on the draft after listening to the btc community all we can do is hope. <br /> <br />and if a normal average joe has to pay gst when buying bitcoin under 10k that cleary doesnt make it good for average joe. lets comment like there is no tomorrow and it will be passed onto ato check link last paragraph for comment instructions... do not let this slide.. its either we fork the ato draft now or it will be too hard later.  

[arbitrage001]

Legitimate business already comply with existing rules and regulation.

Making btc comply with the law is not really that difficult. I don't see how this will end btc usage in Australia.

[Dabs]

Maybe this new development will actually increase usage in AUS. Especially if everyone is compliant and legal and all that.

[dadj]

I made a petition on the GST issue. Please share it around and sign!

http://www.change.org/p/treasury-of-the-australian-government-make-australia-a-bitcoin-friendly-country

[giveBTCpls]

Bitcoin is however you use it. It can be just another way to store value, like metals, or it can be used as actual currency. The more merchants, the more usage as currency it will have tho. Bitcoin is uncorruptible and no goverment can tell "what it is" or how you use it.