Australian Government Outlines Three Solutions to Double Bitcoin Tax
In March, the Australian government released a multi-faceted policy statement on financial technology that included items on both digital currencies as well as broader blockchain applications. Included in the policy statement was a declaration from the Australian Treasury that it would seek avenues to reduce the goods and service tax (GST) effectively applied twice to bitcoin users in the country, both when they purchase digital currency from a seller – an event that triggers GST – and again if they go on to use it to make a purchase. Earlier this week, the government released a discussion....
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Following a policy statement by the Australian Government Treasury in March that saw the authority reveal that digital currencies such as Bitcoin are likely to be exempt from double taxation via the Goods and Services (GST) tax, the Australian Government has kept its word. The Australian Government’s Budget 2016-17 has listed its intention to remove the double taxation levied on digital currencies like Bitcoin. An excerpt from a summary of the 2016-17 Budget that focused on Jobs and Growth, released today, read: The Government has released a consultation paper on changing the GST treatment....
The Australian Government Treasury has, in a detailed policy statement pledging support for Fintech to boost the industry, revealed that digital currencies such as Bitcoin will be exempt from double taxation. The policy statement also details how the government plans on regulating companies in the Fintech arena, as well as those in the bitcoin and blockchain space. In a policy statement released by the Australian Government today, new proposed measures to boost the Fintech sector and establish Australia as a Fintech destination will see the government reduce tax barriers for Fintech....
The Australian government has announced that it will back a legislative solution to tax concerns surrounding bitcoin as part of a broad policy statement on financial technology. Under current tax guidance in the country, bitcoin is considered a form of barter rather than a form of money. Australian businesses must pay goods-and-services tax (GST) if they sell digital currencies, and can be liable for the tax should they receive them as payment. This policy has sparked criticism from the startup community in Australia, who argue it creates an unfair tax environment. Last summer, the....
Over a year after the Australian government promised to put an end to the double taxation of bitcoin purchases, authorities are yet to formally legislate the changes. Under still-current rules mandated by the Australian Tax Office, bitcoin is seen as an “intangible” property. By definition then, bitcoin is a money instrument and cannot be a “negotiable instrument.” Taxing Bitcoin Transactions. Twice. ‘This means that existing laws dictated a double tax on bitcoin, once when exchanging fiat for digital currency, and goods and services tax (GST) applied again when a digital currency is used....
The Australian Government announced in its report entitled “Backing Australia's Fintech” that the current double tax law on digital currencies including Bitcoin is soon to be reformed. Digital currencies such as Bitcoin were in 2014 established by the Australian Taxation Office (ATO) as intangible assets for goods and services tax purposes. Thus, payments involving bitcoin have been considered as a form of barter rather than conventional transactions. However, the major issue with the GST law on digital currencies is that Australian residents who purchase items or goods using bitcoin are....