The Australian Government recently announced it’s “committed to addressing the ‘double taxation’ of digital currencies.” Earlier in the week the Hon Scott Morrison MP, Treasurer of the Commonwealth of Australia, reportedly stated that digital currencies, including bitcoin, will be exempt from Goods and Services Tax (GST) as part of changes intended to boost the fintech sector.
“We will ensure access to concessional tax treatments for venture capital investments in fintech firms, will take action to prevent the double taxation of digital currencies – we won’t be taxing digital currencies.”
– Hon Scott Morrison MP
A report called “Backing Australian FinTech” was simultaneously released, which outlines the Australian Treasury’s response to fintech development priorities. Among the responses was one to amend the Goods and Services Tax Act of 1999.
“The Government recognises that that the current treatment of digital currency under GST law means that consumers are ‘double taxed’ when using digital currency to buy anything already subject to GST,” states the Treasury department. “The Government is committed to addressing the ‘double taxation’ of digital currencies and will work with the industry on legislative options to reform