The federal government has revealed plans to change the way digital currencies are treated under the goods and services tax arrangements, in a move the federal government says will “remove an obstacle” to the growth of Australia’s financial technology sector.
From July 1, 2017, the government will seek to exempt purchases of digital currencies like Bitcoin from the GST.
Under current arrangements, digital currencies are considered to be intangible property for the purposes of the GST, which can mean that people who use digital currencies to make purchases effectively pay the tax twice.
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“Removing double taxation on digital currencies will remove an obstacle for the financial technology (fintech) sector to grow in Australia,” the government said in the 2017-18 budget papers.