Australian government introduces new bill, double taxation of Bitcoin is a thing of the past

The Australian government has introduced a bill that fulfills its promise to address the “double taxation” issue surrounding cryptocurrencies.

Currently, Australians are required to pay GST (Goods and Services Tax) when buying or spending cryptocurrencies. The country’s Bitcoin community has long been critical of this rule. Then, in March 2016, the government announced a plan to address this issue by removing the tax on cryptocurrency purchases.

Now, months after the tax exemption was announced in the budget, the Australian government has introduced a bill that, if passed, will formally enshrine the double tax relief for Bitcoin. In a statement on September 14, the Australian Treasury said the plan would “strengthen Australia’s position as a global fintech hub.”

The government explained:

The bill ensures that Australians do not have to pay GST when purchasing digital currencies, and that Bitcoin has the same status as physical currency for the purpose of GST. The amendment is retroactive to July 1, 2017, in line with the announcement of the 2017 Budget.

The move is part of the country’s efforts to promote financial technology and build a local cryptocurrency ecosystem.

The scheme will facilitate the operation of innovative digital currency companies in Australia, and the government will also take measures to increase employment opportunities and improve salary levels.

It is unclear when the bill will be discussed and further amended. Australia's legislature is bicameral, which means that the bill can only be successfully promoted and written into national law if both the House of Representatives and the Senate agree.