Australian Treasury Consults Public On Bitcoin Foreign Currency Tax Relief

Australia’s ministerial department of Treasury requested public comment on draft legislation that would exclude cryptocurrencies from foreign currency taxation. In a news release, Assistant Treasurer Stephen Jones underlined the intention of the Australian government to stop considering crypto assets as foreign currency for tax purposes. The measure, however, would not affect the collection of capital gains taxes on cryptocurrency held as investments. Exposure Draft Legislation From September 6 to September 30, the general public will have 25 days to express their opinions on the proposed law. Submissions may be sent by mail or electronically. However, they recommend electronic submission. Unless you specify that you want all or part of your contribution to remain confidential, all information (including name and address data) will be publicly available on the Treasury website. Emails with confidentiality clauses created automatically are insufficient for this. Respondents who wish for a portion of their reply to remain confidential should include this material in a separate attachment. Change Of GST Act If the proposal is passed and becomes law, the Goods and Services Tax (GST) Act’s current definition of digital currency will be changed, effectively removing cryptocurrency assets from the concept of foreign currency. Bitcoin (BTC) was adopted as a legal tender in El Salvador, which prompted the move to exclude cryptocurrenci...