Australian Government to end double taxation on digital currency
Treasurer Scott Morrison has introduced legislation into the Australian Parliament to remove the double taxation of digital currency.
Digital currency and GST
By Jim Bulling and Michelle Chasser
The application of consumption tax to digital currencies varies between countries. The UK and countries in the EU have made Bitcoin exempt from such taxes, while other countries such as Japan, Singapore, Canada and Australia treat digital currencies as intangible property which is subject to the tax.
In Australia, this has resulted in consumers paying Goods and Services Tax (GST) when they exchange money for digital currencies and again when they use the digital currency to make a purchase. Treasury has released a discussion paper on the application of GST on digital currencies. While the proposals are very different technically, they both result in removing the double taxation.