Australia Introduces Legislation To Remove Double Taxation On Cryptocurrency
On September 14, 2017, the Australian government introduced legislation to remove the double taxation of digital currencies. “Currently, consumers who use digital currency can effectively bear GST [Good and Services Tax] 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,” wrote Treasurer Scott Morrison in a release.
In May 2017, ETHNews reported on the Turnbull administration’s initial budget proposal. Retroactively effective from July 1, 2017, the related legislation will officially remove the two-time tax on digital currency. The Bill received unanimous approval from Australia’s states and territories.
This is great news for digital currency businesses in Australia and it’s emblematic of the continent’s forward-looking FinTech policies. Previously, the Australian government has brought cryptocurrency exchanges under the scope of its regulation. Furthermore, Australian politicians and officials have taken the lead on FinTech, establishing the Parliamentary Friends Of Blockchain Group and leading the charge for Technical Committee 307 within the International Organization for Standardization.