Budget 2017: Government makes good on Bitcoin promise - Double GST to end from 1 July

[bitkilo]

Budget 2017: Government makes good on Bitcoin promise - Double GST to end from 1 July

The federal government’s budget confirms that from 1 July Bitcoin and similar digital currencies will no longer suffer the current ‘double taxation’ burden.

Currently Bitcoin is treated as more like a commodity than a currency for GST purposes, with transactions using the cryptocurrency akin to barter under Australian tax law.

“Consequently, consumers who use digital currencies as payment can effectively bearGST twice: once on the purchase of the digital currency and again on its use in exchange for other goods and services subject to GST,” budget documents state.

Treasurer Scott Morrison last year announced the government planned to change the tax treatment of the currency. Advocates of the digital currency have argued the current situation acts as a fetter on the development of Bitcoin-based business within Australia.

A parliamentary inquiry last year recommended that the government tackle the double taxation issue.