Australia to scrap bitcoin GST
- 21 March 2016 | Richard Asquith
Australia is planning to make the trading of bitcoin and other digital currencies exempt from 10% Goods & Services Tax.
The current taxable status of bitcoin is a severe restriction to adoption of the currency in Australia. It affectively adds 10% costs to each trade, with a rapid compounding as the currency is repeatedly traded.
The change was announced by Australian Treasury, Scott Morrison. It will still require approval by the Australian states. However, since revenues are so small, it is unlikely that they would block the reform.
The move will bring Australia into line with the European, and Asian regional competitors such as Singapore. Although Japan continues to subject bitcoin trades subject to 8% Consumption Tax.