Australia Bitcoin Law
Australia law with regard to bitcoin has changed since 1st July, 2017.
The Australian government wrote: “The Government will make it easier for new innovative digital currency businesses to operate in Australia. From 1 July 2017, purchases of digital currency will no longer be subject to the GST, allowing digital currencies to be treated just like money for GST purposes. Currently, consumers who use digital currencies can effectively bear GST twice: once on the purchase of the digital currency and once again on its use in exchange for other goods and services subject to the GST.”
What does it means?
- Before 1st July, 2017 bitcoin was classified goods. Therefore, any purchase and sale of bitcoin will need to pay GST. Any exchange and trading platforms need to report all transaction to the tax office for GST purposes.
- After 1st July, 2017 bitcoin will be classified as money and will no longer need to pay GST in any transaction. Buying Bitcoin is the same as exchanging foreign currencies like US Dollars, British Pounds or any other currencies.
- It is a good new for bitcoin traders and investors, since they don’t have to pay GST.
You need to be aware that the money you made while investing or trading of bitcoin will subject to taxation. It will be added to your other income for tax purposes. Since money earned through any process of buying and selling will be regarded as income, it is exactly the same as share trading or currency exchange trading. Therefore, any expenses that you incurred while you make money in bitcoin will be deductible, e.g. computer, electricity, internet fee, bank fee, transaction fee and so forth.