It has been a long time since Australian government is working on the bill to cut the double taxation process on the transaction of cryptocurrencies such as bitcoin.
Finally, the long-awaited bill has been passed and providing the great relief to all the Australian bitcoin users who were paying double tax for the cryptocurrencies transactions. The GST and service tax on product and again on the payment made through bitcoin.
Daniel Alexiuc, CEO of Australian bitcoin startup Living Room of Satoshi, once explained the same issue of tax in his interview to CCN last year that, “If you pay $4 in bitcoin for a coffee, you will pay 40c GST for the coffee, and 40c again for the bitcoin you used to pay for the coffee.”
Last year in March 2016, the Australian government committed to cut the double tax from cryptocurrencies. But the same remains nil, there were no such changes implemented in the legislation. The delay in action is been criticized by Australia’s FinTech community and in the following days, it has been finalized that the removal of tax will be in the federal budget this year.
Now when the bill has been passed, the Australia’s treasurer Scott Morrison mentioned in his statement:
“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.”
The bill has been introduced but it is still to be confirmed by parliament before being added to the national law. There are no such reports that when it will be going in the process, but it is sure the bitcoin industry on both local and larger scale will be profited with the bill passed. As the transaction become cheaper will give a boost to the cryptocurrencies and price.