The Australian Treasurer and the FinTech Advisory Group met on Friday to further discuss the development of innovation in the financial services sector. Among topics focused on were blockchain technology and ending the double tax for digital currencies, including bitcoin.
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Some Progress Made
The meeting discussed various FinTech topics, including a review of opportunities for blockchain technology. Also, the government reiterated “its intention to stop the ‘double taxation’ of digital currencies under the GST regime.”
Currently, consumers in the land down under are ‘double taxed’ when using digital currency to buy anything already subject to Goods and Services Tax (GST). The Australian Tax Office (ATO) does not consider bitcoin and other cryptocurrencies money or foreign currency.
“They’re treated as assets for capital gains tax purposes, making them more like a barter arrangement,” according to the ATO. “When receiving bitcoin in return for goods and services, a business may be charged GST on that bitcoin.”
However, according to the press release, “the Advisory Group has already made some real progress working with government.”
Ending the Double Tax on Digital Currencies
In March, the Australian government announced its commitment to end the unfair treatment of