Australia Eyes Bitcoin Tax Transformation

August 5, 2015 Taxation in Australia

CANBERRA – The widespread use of cryptocurrencies has taken one step closer to becoming a reality as a new calls rise for a rethink of taxation of digital coins.

In a recent report the Senate Standing Committees on Economics on Digital Currencies in Australia called for transactions completed in cryptocurrencies to be treated as normal currency for the purposes of consumption tax.

Under current regulations, the Australian Tax Office treats cryptocurrencies as intangible assets, and, as such, eligible for both consumption tax, capital gains tax, and fringe benefit tax.

The previous ruling regarding the taxation of transaction involving cryptocurrencies has reportedly already driven out some businesses from the country, as they relocated to other countries which had friendlier regulations for digital currencies.

In the report it was also noted that cryptocurrencies may become a larger aspect of the national economy, both as a business sector and a means of making payments, but the government will first need to make several legislative changes to ease the process for the widespread use of such facilities.

Photo By: BTC Keychain