So far, the purchase and sale of crypto currencies in Australia were subject to double VAT. Following a bill by the Australian government, this hurdle for crypto trading should now be lifted.
Back in May, it was reported that the Australian government is planning to lower the tax hurdle. Now activity seems to come in this attempt. In a statement entitled “Removing the double taxation of digital currency”, the Turnbull government is in favor of honoring the 2017/18 budget pledge. This action promises to be another step in turning Australia into the global FinTech center.
An elementary part of the new law is the regulation that Australians in the future only have to pay a tax on the trade in cryptocurrencies. The VAT, which had to be paid at the time of purchase of a digital currency, is therefore canceled from now on.
Crypto currencies are now taxed in the same way as physical money. The new tax regime will apply retroactively from 1 July 2017, in line with government announcements in the 2017/18 budget.
The new law aims to make it easier for citizens to acquire new innovative digital currencies. Similarly, the crypto business in Australia is to be revived, in which the government sees the possibility of creating jobs and salaries.
The Turnbull government intends to continue working closely with Australia’s fintech industry to create a work environment that is both internationally competitive and will play a pivotal role in the long-term transformation of the national economy.
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