Australian government has passed a new legislation on double taxation of cryptocurrencies-first when buying it, then later when buying items subject to the tax and finally bringing it to an end. After the new law, Australians will not give Goods & Services Tax on purchase of cryptocurrencies.
The Australian Senate Economics References Committee proposed a review of the situation this August and after passing of this new bill w.e.f from July 1, 2018, cryptocurrencies will get the same GST treatment as foreign currencies.
The Australian Criminal Intelligence Commission (ACIC) has been a strong advocate for regulating digital currencies, ABC news reports.
Discussed in an earlier post, Australian senators have created a group, Bipartisan Parliamentary Friends of Blockchain group, to encourage the adoption of bitcoin and consider creating its own cryptocurrency.
However, the Attorney-General’s Department’s (AGD) also sees loopholes in regulating cryptocurrencies. “E-currencies” in the Anti-Money Laundering and Counter-Terrorism Financing Act are defined as “an internet-based, electronic means of exchange” backed by something physical like a “precious metal” (gold or silver), or “bullion”. But, Bitcoin or other cryptos are not backed by any physical asset.