Bitcoin Forum
August 25, 2019, 12:44:31 PM *
News: Latest Bitcoin Core release: 0.18.0 [Torrent] (New!)
   Home   Help Search Login Register More  
Pages: [1]
Author Topic: [2017-05-08]Australia Commits to Kill Bitcoin Double Tax Despite Delay  (Read 9540 times)
Sr. Member
Offline Offline

Activity: 910
Merit: 282

View Profile
May 08, 2017, 10:13:03 AM

Australia Commits to Kill Bitcoin Double Tax Despite Delay

The Australian government has reaffirmed its commitment to put an end to the ‘double taxation’ of purchases made by bitcoin and other digital currencies in the country.

Over a year ago in March 2016, the Australian government, through its Treasury, released a comprehensive policy titled “Australia’s FinTech Priorities’ in a marked effort to boost the local financial technology industry. In it, the government pledged to address the ‘double taxation’ of digital currencies.

‘[We] will take action to prevent the double taxation of digital currencies – we won’t be taxing digital currencies,” stated Australian Treasurer Scott Morrison at the time, in no uncertain terms.

Australian consumers are taxed twice during a transaction related to digital currencies, once for the GST (goods and services tax) on the product and again for the GST levied on the digital currency used for the payment.

“If you pay $4 in bitcoin for a coffee, you will pay 40c GST for the coffee, and 40c again for the bitcoin you used to pay for the coffee,” explained Daniel Alexiuc, CEO of Australian bitcoin startup Living Room of Satoshi, speaking to CCN at the time.

This is due to the Australian Tax Office deeming bitcoin as an ‘intangible property’, treating its transactions as barter transactions, rather than acknowledging the cryptocurrency as money or a foreign currency.

Come May 2016, the Government followed up on its pledge to put an end to the GST treatment of digital currencies. “This change will ensure that consumers are no longer ‘double taxed’ when using digital currencies to buy goods and services already subjected to GST,’ the government stated in its 2016-17 Budget summary.

A year later, those legislative changes to put an end to the double taxation of bitcoin purchases are yet to occur, leaving Australia’s bitcoin and FinTech industry frustrated.

t could be put through Parliament very quickly. We’ve been told that it is going through but it needs to be prioritized on the agenda, but it just hasn’t…We’re a bit disappointed with the delay,” stated Danielle Szetho last month, the chief executive of industry lobby group FinTech Australia.

Keeping its Promise

 In an official response published last week in response to recommendations by its advisory body, the Australian Government heard that “digital currencies, such as Bitcoin, should be treated as a financial supply for GST purposes.” A legislative change would be required to update the definition of money to include digital currencies, the advisory body stated.

To this, the Government has reiterated its earlier stance, stating in its response:

The Government agrees that consumers should not be subject to the GST twice when using digital currency to purchase goods or services…Any change to the GST treatment of digital currencies is subject to formal state and territory agreement.

CCN has previously reported on the three specific options that the Australian Treasury would consider to prevent the double taxation of digital currencies.

In its document published last week, the Australian Government has also revealed plans toward regulating bitcoin exchanges in the country.

Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
Hero Member
Offline Offline

Posts: 1566737071

View Profile Personal Message (Offline)

Reply with quote  #2

Report to moderator
Sr. Member
Offline Offline

Activity: 826
Merit: 265

View Profile
May 08, 2017, 05:34:33 PM

As it says, I think Australia will be the next country to put regulations on bitcoin.  They are now committing to prevent double tax on purchases made by bitcoin and other digital currencies. This will be a good move for the Australian government and this will open up more purchases online using bitcoin. I think we should consider this another big win for crypto industry.
Offline Offline

Activity: 17
Merit: 0

View Profile
July 07, 2017, 07:01:35 AM

Australia with Japan are the only countries in the world which are doing legislation with blockchain and digital currencies.
In Australia since July 1st the Bitcoin has not double GST or tax. Anyway there is a public consultation during this month.
Also is possible they release their own digital coin soon. A ozzycoin.
¿how is this topic in other countries?

Public consultation on the exposure draft legislation and explanatory material will run for four weeks, closing on Wednesday 26 July 2017. The purpose of public consultation is to seek stakeholder views on the exposure draft legislation and explanatory material.

The Government has worked with industry to identify the best option to reform GST law to remove the double taxation. In May 2016 the Government released a discussion paper entitled ‘GST treatment of digital currency’ that outlined potential approaches to remove the double taxation of digital currency

More info here:
Pages: [1]
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!