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REMOVAL OF DOUBLE TAX ON CRYPTOCURRENCIES SAID TO SUPPORT AUSTRALIA’S OWN SILICON VALLEY

By Administrator | 27 October 2017

Legislation to remove double taxation on digital currencies, such as Bitcoin, has been passed by Australian Parliament, with fintech industry leaders describing the news as a win for consumers and businesses.

The Treasury Laws Amendment (2017 Measures No. 6) Bill 2017  was tabled in Parliament, last month, by Treasurer Scott Morrison. He said the reform, which will apply retrospectively from 1 July 2017, delivers on the Government’s 2017-18 Budget promise to ensure consumers who use digital currency no longer have to 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.

Morrison said the reform will “further cement Australia’s reputation as a global FinTech centre” by “ it easier for new innovative digital currency businesses to operate in Australia.

Blockchain Global chief executive Sam Lee said the double GST treatment of digital currencies had been preventing Australia from growing its cryptocurrency payments rail, which he says will be a key pillar of the future global economy.

“The removal of double GST on digital currencies will position Australia as a great jurisdiction to be part of the rapidly growing global blockchain ecosystem,” he said.

“There’s a wealth of opportunities that this removal of the double taxation can bring to Australia. For instance, Australian investors are no longer paying a 10 per cent premium when buying cryptocurrencies.”

Lee said the passage of the Federal Government’s bill means that Australians will no longer be penalised for acquiring digital currencies. Read more

James Harkness - Dynamic Business - 23 Oct 2017

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