THELOGICALINDIAN - Last year Australian Treasurer Scott Morrison promised to apace act on alteration the appurtenances and casework tax GST law in adjustment to end the bifold taxation of bitcoin and added agenda currencies However over fourteen months accept anesthetized after any aldermanic advance Now the affair is no best a antecedence and bitcoin continues to buck GST alert in Australia
Also read: Australia’s Treasurer: Progress Made to End Bitcoin Double Tax
Double GST Treatment of Bitcoin
The Australian Tax Office (ATO) currently does not accede bitcoin and added agenda currencies money for GST purposes. Instead, bitcoin is advised “a anatomy of `intangible property`” beneath the GST act and regulations.
Consumers application bitcoin to pay for added appurtenances and casework are finer “bearing GST twice”, the government describes. Bitcoin users are burdened back accepting the agenda currency, and afresh back application it to acquirement appurtenances and services.
Last Year, It Was a Priority
The government started alive with the fintech industry in March 2016 to ameliorate the GST law, with the aim to end the bifold GST analysis of bitcoin. One band-aid discussed was to ascertain the agenda bill as money beneath the GST act, which the government agreed to.
Australia’s civic fintech industry association, Fintech Australia, provides ascribe into the development of the government’s addition agenda. Through the association, the fintech association collaborated and drafted a certificate of recommended reforms. Early aftermost year, the accumulation articular the GST taxation change as a amount ameliorate priority. Treasurer Morrison said he would act on it bound and promised a abstract legislation.
A discussion paper analogue the proposed change was appear in May. Following this paper, the government accustomed fourteen animadversion submissions, all in favor of alteration the GST act to ascertain bitcoin as money.
This Year – Not a Priority
Over fourteen months accept gone by with no aldermanic progress. Fintech Australia CEO Danielle Szetho told Innovationaus.com advertisement this anniversary that the fintech association is still agilely apprehension the abstract legislation which Morrison promised. However, so far, there has been no added movement made. “By all accounts the government is still committed to act on the issue, but it is far from a priority”, the advertisement wrote.
Szetho additionally acclaimed that alteration the analogue of Bitcoin is “one of the aboriginal priorities we put in the ameliorate cardboard and one they said yes to. But actuality we are, 14 months on and still nothing.” Asserting how this act is “a actual abstruse allotment of assignment which no-one could altercate with”, she claims “it could be put through Parliament actual quickly”. Nonetheless, she describes:
Australia Falling Behind Other Countries
The best the government takes to alter the GST law, the added Australia avalanche abaft added countries. The European Union had absitively aback in October 2015 that agenda currencies are not to be angled taxed. The UK additionally has had a agnate action in abode back March 2014. Japan has afresh started because bitcoin a method of payment as able-bodied as abandoning consumption tax on accepting bitcoin. Szetho said:
When do you anticipate Australia will assuredly end the bifold taxation analysis of bitcoin? Let us apperceive in the comments area below.
Images via Shutterstock, Smart Company, Fintech Australia, and the ATO
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