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 investment and curb the existing goods-and-services tax (GST) levied on digital currencies such as Bitcoin.
In an excerpt from the comprehensive policy release titled “ Australia’s Fintech Priorities ”, a section toward digital currencies and their GST treatment reads:
The Government recognises that that the current treatment of digital currency under GST law means that consumers are ‘double taxed’ when using digital currency to buy anything already subject to GST.
The Government is committed to addressing the ‘double taxation’ of digital currencies and will work with the industry on legislative options to reform the law relating to GST as it is applied to digital currencies.
Furthermore, the policy statement from the Australian Government Treasury recognizes that there are over 600 digital currencies around with “different protocols for transaction processing and confirmation.” The statement also revealed its understanding of the fact that they have different approaches to the growth of supply of their digital currency units.
The Treasury further added that “removing the ‘double taxation’ treatment for GST on digital currencies and applying adequate anti-money laundering and counter-terrorism financing rules may facilitate further developments or use [of digital currencies] in the future.”
As reported by the Australian Financial Review , Australian Treasurer Scott Morrison stated: We will ensure access to concessional […]
