Another milestone in the innovation and fintech ecosystem
The Australian government has helped move innovation in the fintech ecosystem forward with the removal of double taxation of digital currency as announced in the 2017-18 Budget.
“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.” according to the Budget 2017-18.
“This is welcoming news as we operate Australia’s largest Bitcoin Exchange (www.acx.io), and is inline with our recommendations that were submitted when we participated in the 2015 Senate Enquiry into Digital Currency. I believe this resolves a long standing issue identified by our industry, we look forward to the removal coming into effect which positions Australia as one of the most blockchain friendly jurisdictions in the world.” said Sam Lee, CEO of Blockchain Global Limited.
ADCCA have played an integral role in driving this change on our industry. Their continuous effort in working together with the Treasury officials has laid the groundwork in putting Australia ahead of many other countries as an innovative nation.
Martin Davidson, Community Manager of Blockchain Centre, a community and knowledge hub for blockchain startups in Australia said, “It’s great news for the development of the Australian blockchain ecosystem as this will enable more retail interaction with crypto-currencies, which I believe will soon become widely adopted around the world. This revision to the tax treatment of digital currency will enable more businesses to be part of the future of trade and commerce and to gain exposure to the benefits of using digital currency without being financially penalized.”
“From legal perspective this put crypto-currencies such as bitcoin on equal footing as a payment method to settle transactions involving value. It’s great that Australia is building a forward thinking economy similar to Japan who has recognizes digital currencies as a method of payment in April 2017.” said Sam.
Having previously rolled out over 100 Bitcoin accepting terminals in Melbourne Chinatown before the double GST ruling, Blockchain Global looks forward to reactivating hardware and software that specifically provides merchant facilities to offer consumers a wider choice of payment options in Q3 of 2017.