Bitcoin will get the exact same GST treatment as foreign currency after brand-new laws to stop double tax cleared Parliament.
Digital currencies purchased by Australians will not be accountable for GST from July 1, 2018, following a change to tax law on Thursday.
Under the old guidelines, they might successfully be taxed two times– very first when they purchased the electronic money, and once again if they used it on products based on the GST.
That will be fantastic news for financiers of bitcoin– an around the world cryptocurrency and digital payment system– which is today trading at more than $US5600, a big rise from a September low of $US2980.
As just recently as December, bitcoin was trading at less than $US1000. Ever since, it has evaded whatever from tightening up guidelines, feuding factions splitting its hidden blockchain and cautions from financial bigwigs.
The most recent rise is being owned in part by increasing institutional interest, with some previous skeptics stating they are now open to methods to obtain included.
The digital currency’s rise has divided the financial neighborhood in between those encouraged it is a bubble on the edge of popping while other prominent financiers like Mark Cuban and Mike Novogratz stated they are purchasing the sector.