The end of Australia bitcoin commitment to defer the implementation of Double Taxation

The end of Australia bitcoin commitment to defer the implementation of Double Taxation

Last year, Australian finance minister ScottMorrison pledged to take swift action to modify the goods and services tax (GST) method, to end the double taxation and other digital currency bitcoin. However, over the past 14 months, there is no legislation progress. Now the problem is no longer a priority in Australia, bitcoin still continue to bear double taxation.

The Australian Taxation Office (ATO) there is no bitcoin and other digital currency as GST is defined within the scope of the currency. On the contrary, according to the goods and services tax, bitcoin is considered to be “a form of intangible assets””.

According to the government, consumers use bitcoin payment of other goods and services will be levied two times the actual effective GST.

Bitcoin users are subject to tax once in the purchase of digital currency, the use of digital currency payment for goods and services shall be levied once.

In the last year, it is still a priority

The government began to carry out GST reform in the financial technology industry in March 2016. One solution is to be discussed, according to the consent of the government of the GST act, the digital money is defined as currency.

Australia’s national financial technology industry association, FintechAustralia (Australian Financial Technology), become the government innovation for development thrust. Through this association, the financial community of science and technology cooperation to draft a reform document. At the beginning of last year, the group identified the GST tax reform as the core focus of reform, finance minister Morrison said he would move quickly and promised a bill.

In May 2016 published a discussion paper provides an overview of the proposed modification. In this paper, the government received fourteen submissions, all the people are in favor of modified GST method, bitcoin is defined as currency.

This year is no longer a priority

DanielleSzetho, FintechAustraliaCEO

14 months later, no progress in legislation. FintechAustralia CEO DanielleSzetho Innovationaus.com said in a weekly published this week in science and technology, the financial community is still in eagerly awaiting the draft legislation Morrison commitment. However, so far, did not see further initiatives.

The journal wrote: “anyway, the government will remain committed to take action on this issue, but this is not a pressing matter of the moment they.”

Szetho also pointed out that the revised definition bitcoin this thing is “a had been on the reform on the document is a priority, they through the item. But here we waited for 14 months, what did not happen.” And that this action is a very technical work, this is an argument, she said: “(if draft draft) the bill could soon be passed by parliament.” In spite of this, she said:

“We were told that the bill will be passed, but it needs to be first on the agenda, but it is not. They have been working on this matter, but other things are all done, but this thing. We are disappointed in the delay commitment.”

Australia behind other countries

The government to amend the GST tax laws for longer periods of time, Australia is behind other countries. The European Union has decided in October 2015 digital currency should not double taxation. Since March 2014, the British also appeared in a similar policy. Japan recently bitcoin as a payment, also cancelled bitcoin sales tax. Szetho said:

“Australia is the early use of bitcoin, but in the promotion of acceptable limits. Because no one knows how bitcoin tax. This slows the pace of currency by the new australia.”

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