The Australian government has introduced a legislation to remove the double taxation of digital currency.

The legislation has been introduced months after the government removed goods-and-services tax (GST) on digital currency purchases in its national budget 2017-18, effective 01 July 2017. The bill, if passed, would make it easier for new innovative digital currency businesses to operate in Australia.

The official announcement states:

“Currently, consumers who use digital currency 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.

“The Bill will ensure that Australians are no longer charged GST on purchases of digital currency, allowing it to be treated the same way as physical money for GST purposes. The law change will retrospectively apply from 1 July 2017, in line with the 2017 Budget announcement.”

The Australian Treasury believes that this move will “further cement Australia’s reputation as a global FinTech centre.”

In August, the Ministry of Justice announced a bill that seeks to bring digital currency exchange providers under the remit of the Australian Transactions and Reporting Analysis Centre (AUSTRAC).

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