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Australian Treasury Consults Public On The Taxation Of Bitcoin As a Foreign Currency

06-Sep-2022 By: Shailja Joshi
Australian Treasury

Australia's Treasury ministerial department went out to the public for feedback on proposed legislation that, if implemented, would exclude cryptocurrencies from being taxed as a foreign currency.

Assistant Treasurer Stephen Jones announced in a press release that the Australian government intends to exclude crypto assets from being treated as a foreign currency for tax reasons. The measure, however, would have no effect on the collection of capital gains taxes on crypto held as an investment.

The public has been given 25 days, from September 6 to September 30, to voice their opinions on the proposed legislation.

If passed into law, the bill will change the Goods and Services Tax (GST) Act's existing definition of digital assets, essentially eliminating crypto assets from the definition of foreign currency. 

The Treasury stated that unless the respondent deliberately opts out, their personal information, including name and address, would be made public.

The move to exclude cryptocurrencies as foreign currency stems directly from El Salvador's adoption of Bitcoin (BTC) as legal currency. Through this law, Australia intends to reduce the possible uncertainty associated with taxing cryptocurrency.

Mendoza, an Argentine province, has begun accepting cryptocurrency for taxes and fees. According to the Mendoza Tax Administration (ATM), enabling crypto payments gives taxpayers another way to comply with tax duties. Furthermore, the move fulfills its own strategic goal of modernization and innovation.

From August 24, Mendoza residents may use the ATM's website to pay taxes using any crypto wallet, including Binance, Bybit, and Ripio. The system generates a QR code depending on the cryptocurrency selected by the end user, which subsequently converts an equivalent quantity of stablecoins to Argentine pesos via an unnamed online payment service provider.

Read also: ETH Co-Founder Vitalik Buterin Says The Merge Is Coming Sooner

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