The Australian government has created legislation to end the double taxation of bitcoin and other cryptocurrencies. Cryptocurrency users, in the past, would be taxed upon buying the coin and when they exchanged it for goods and services. The Australian government hopes the bill will open doors for greater levels of financial technology investment in the country.
The Australian government has finally and conclusively provided a legislative end to the double taxation of Bitcoin and other cryptocurrencies. The bill will retroactively be enforced to July 1 of this year, as had been promised earlier in the year.
The bill ends the practice of taxing the purchase of Bitcoin and other cryptocurrencies, according to the Australian goods and services tax (GST). The release regarding the end of the double taxation standard included the following:
“Currently, consumers who use digital currency can effectively bear GST twice: once on the purchase of the digital currency, and once again on its use in exchange for other goods and services subject to the GST. The bill will ensure that Australians are no longer charged GST on purchases of digital currency, allowing it to be treated the same way as physical money for GST purposes."
The current Australian government hopes that the bill will open doors for greater levels of Fintech investment into the country.
As the Chinese government moves to crack down on ICOs and cryptocurrencies, the Australian government is seeking to embrace the sea change in the financial world.