As trading in cryptocurrencies is getting more mainstream, the Australian government is considering to introduce a bill in order to resolve a “double taxation” issue for the cryptocurrency.
As per the existing laws in the country, all the investors and traders have to compulsory pay the goods-and-services tax (GST) in case of any transaction which involves buying or selling of cryptocurrencies. This step of levying taxes has been criticised a lot by the local investor community and raises some serious questions of Australia’s open participation into the FinTech industry.
Having received much heat and criticism from investors, the Australian government had announced a plan to consider scrapping of taxes at the time of purchase. Giving this a further push in the investor’s interest, the government has now introduced a legislation which if passed would eliminate taxes on purchases.
The government in a statement said:
“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 law change will retrospectively apply from 1 July 2017, in line with the 2017 Budget announcement.”
Such a move by the Australian government instills some confidence in local cryptocurrency investors and shows that the government is serious to promote upcoming financial technologies in the country. Australian Treasury in a statement said that this plan would further “cement Australia’s reputation as a global fintech centre.The Bill will make it easier for new innovative digital currency businesses to operate in Australia, as the government takes action to boost jobs and wages.”
However, at this point in time, it is not clear as to when the bill is likely to be considered for a revision or debate. Australia follows a bicameral legislature and this legislation has to be approved by both chambers in order fir it to advance further for an actual implementation.
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