Australia implements harsh anti-crypto tax laws.

[JuniAiko]

https://lets-talk.ato.gov.au/PAG/news_feed/consultation-substantiating-cryptocurrency-taxation-events
Every single trading of cryptos from one to another are now taxed, and cryptos are treated as an asset, rather than a currency.

By treating cryptos as a property/asset instead of a currency, Australia is effectively locking themselves off from becoming one of the leading crypto-tech countries. I expect startups and even big investors pulling their money out of Australia to more crypto friendly countries with less ridiculous taxation laws -- e.g. taxing only when cryptos is converted to/from fiat.


Update:
Here's one scenario why this tax policy should be considered harsh and impractical, and why big investors and crypto-startups should move their money out of Australia and look for elsewhere that are more supportive of crypto innovation and growth.

Purchase bitcoin (asset acquisition)
Trading consists of 2 steps.

Sell bitcoin (Capital gain event)
Purchase OMG (asset acquisition)
When you cash out

Withdraw to AUD 12 months later (capital gain event)
So you actually pay tax twice. More if OMG > BTC > AUD

This can be very problematic since you might have made a large profit at EOFY, but you've yet to cash it out into AUD. So you're left with a large tax bill, even if the following year your investment crashes to nothing.

[caisa88]

Wow, this is ridicoulos. They did the same thing with the regulations for online gambling, and now people from Australia are not allowed to play on normal gambling websites.
I'm guessing that many people from Australia will just give up on making crypto-investments.

[Febo]

https://lets-talk.ato.gov.au/PAG/news_feed/consultation-substantiating-cryptocurrency-taxation-events
Every single trading of cryptos from one to another are now taxed, and cryptos are treated as an asset, rather than a currency.

By treating cryptos as a property/asset instead of a currency, Australia is effectively locking themselves off from becoming one of the leading crypto-tech countries. I expect startups and even big investors pulling their money out of Australia to more crypto friendly countries with less ridiculous taxation laws -- e.g. taxing only when cryptos is converted to/from fiat.

As long as taxes will return back to boost crypto economy in Australia all will be fine.  But since there was not many previous experiences is hard to set right taxation. If startups will leave Australia that is definitely bad. Tiem will tell and I am sure they will react accordingly.

[JuniAiko]

There are a lot of other smaller friendlier countries that investors and crypto-startups/companies can always move off to.
Binance have already done it. Hopefully more would follow.

[Vit83]

Taxes won't help to earn money for the government. Most people trading anonymously already. This law just can stop new great projects in their country. Devs will avoid Australia for some time before they understand that they are doing wrong.

[jeda2000]

This kind of news seems to be negative, and even cryptography can cause a slight drop in the money market, but the main point that needs to be emphasized is that the states make it a legal status and a taxation link. Of course the tax rates could be kept lower

[preshpr1nce]

So if I'm reading this right, each transaction made on an exchange will come with a tax?
This will destroy it for day traders if so, need more information on the tax rate.

I'm an Australian, I make a lot of small trades for 5% gains and if the tax is greater than the trade value then I may look at moving to NZ if I ever gain much value in crypto, happy to pay capital gains on my profits but no chance am I paying a tax greater than possible profits.

Looks like holding will be the new norm for Australians, I've always payed my tax and will always follow law, but this is a huge fuck you to Australians, we had pretty fair regulations prior to this.

[JuniAiko]

It may be good news with regards to acceptance of cryptos in Australia by the government, and especially since the tax laws encourages actual adoptive "use" of cryptos as payment options.
 
However the fact remains that developers can easily move their projects out of the country and base it elsewhere such as Singapore which do not have such hefty and tediously impractical tax policy imposed on traders and cryptos holders.

[preshpr1nce]

It may be good news with regards to acceptance of cryptos in Australia by the government, and especially since the tax laws encourages actual adoptive "use" of cryptos as payment options.
 
However the fact remains that developers can easily move their projects out of the country and base it elsewhere such as Singapore which do not have such hefty and tediously impractical tax policy imposed on traders and cryptos holders.

I think taxing under capital gains for profit was a good step for acceptance, I need more info on this, taxing a single trade of equal value makes no sense, if they are removing fiat capital gains and instead taxing on trade based profits this isn't too bad, it just means people holding coins over fiat will still have to pay tax, I can live with that.

Come tax time I'll see what a specialist accountant has to say, I'm not too far off being able to day trade and turn over more than a 9-5 professional job, I'll move countries if this news is highly impacting, if it's just taxable gains on traded profits then so be it.

I'm not sure why they feel they'll make more money from a trade based approach, scaring off many many traders, over just taking capital gains from a wide range of traders.
Our politicians are monkeys.

Thanks for the thread by the way, merit to you.

[JuniAiko]

Cheers Presh

[IntelligentIdiot]

What can you expect? Australia is like monkey see monkey do of the West. If the west did something, Australia is sure to follow suit. always feels like they are a western country with lots of privileges.

[JuniAiko]

Some are wrongly assuming that this is about anti-taxation, but the criticism is against way it is implemented (just like here in the US)!
It is excessive, tedious, and impractical (see the scenario example that I have quoted under the OP).

The best and fairest way to tax cryptos is when the person converts cryptos back into fiat to collect %gain profits, and it could be calculated against the purchase price of BTC when they have entered from Fiat, etc.

[Lecsor]

Australia stalwarts still want to somehow control this technology. Here you are the first step of each state to the adoption of such a will, so can let it be until cryptocurrency free and uncontrolled, the authorities, so that we do not lose interest in them. Because we will give all the profits, and will get a penny.

[Yuuto]

Their economy will not benefit from this decision a single bit, because they are literally trying to discourage people from launching any sort of crypto related service in their country or even trade cryptos at all.

And as we all know, crypto is going to be the future. Even central banks have started to look into cryptocurrencies.

Makes no sense since last year they just removed double taxing on bitcoin purchases. But now they're essentially adding that back into the system again