Australia has officially stopped the double taxation on bitcoin

Since next year Australians shouldn't pay a tax any more ‘on goods and services’ (GST) upon purchases of cryptocurrencies.

After adoption of the new legislation in parliament the disputable "double taxation" of cryptocurrencies — the first is older on October 19 upon their purchase, and then — upon purchase of goods for cryptocurrencies, at last, comes to an end.

The situation has arisen from the previous law adopted in 2014 which considered digital currencies as barter goods for GST purposes. It has received wide criticism from defenders of technologies, and last year government officials have undertaken to correct a problem.

The Australian Senate Committee on economic recommendations has suggested to carry out the review of a situation in August of this year, and the Ministry of Finance has in detail stated provisions of the new legislation for a solution.

With adoption of the new bill, since July 1, 2018, the bitcoin and other cryptocurrencies will be assessed with a tax as well as foreign currency now, the Australian mass media report.

Steps of the Australian regulators occur against the background of extensive international discussions of ways of the taxation of the assets tied to technology a blockchain — while approaches of regulators of the different countries can differ considerably.

Quite recently, this year, lawyer groups have aimed at provisions of the tax law of the USA — on application of the law on property by the rule of 2014 though separate states then were, it seems, more progressive in this question.