The Australian Government has officially confirmed it will treat digital currencies “just like money” from 1 July 2017 and it will no longer subject digital currencies to double taxation. This change reverses the previous position to double tax the use of digital currencies that is to tax the acquisition of currencies and the application of such currencies. A number of well-known operators have withdrawn from the country in 2014 due to the "double taxation" position of the Government. The budget papers indicate a desire to change Australia’s environment.
In the 2017-18 budget summary, the Australian government noted that as part of its plan to “make it easier” for digital currency businesses to operate in Australia. It will ensure that nowhere in the supply chain is the goods and service tax (GST) paid more than once.
“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.”
“Innovation will drive productivity growth in Australia” … “The Government is committed to establishing Australia as a leading global financial technology (FinTech) hub and is announcing a new package that aims to position our local FinTech industry as a world leader.”
Given this position a number of small cap investor opportunities have opened and are currently being considered by the Small Cap Investors Club.
Greg Gibson Owner, Founder and Designer
NewTribeZ.net & NewTribeZ Radio