Australia to Start Treating Bitcoin as Fiat Money

Bitcoin May be Treated as Fiat Money for Service and Goods Tax in Australia

Australia to Start Treating Bitcoin as Fiat MoneyBitcoins and other cryptocurrencies in Australia should be treated as fiat money says the Australian government. A report released on Tuesday says an amendment on the Australian Taxation Office decision to treat all digital currency as a commodity should be recommended.

The decision made back in August 2014 says that “neither money nor a foreign currency” should be taxed accordingly. The Senate Economics References Committee said that their view on bitcoins creates a result of extra burdens on companies and will have a double taxation effect.

“Without a doubt, the main benefit will be the confidence and certainty that removing a GST will provide to our own digital entrepreneurs, and the foreign businesses who want to set up here. The Treasury ministers need to work with the states to make the changes necessary to bring our legislation into the 21st century,” says Sam Dastyari, Labor Senator for the Committee.

There will be a final ruling on digital currency. Submission is set to be turned into the senate by August 10th and if approved Australia will join the United Kingdom with recognizing bitcoins as fiat money. There have been 48 group and individual submissions the SERC has received.

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