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The Australian Treasury urges public opinion regarding the exchange tax exemption for bitcoins

  • News
  • September 6, 2022
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The public was given 25 days to comment on the proposed legislation.

Australia’s ministerial department of Treasury is seeking public consultation on draft legislation that would exclude cryptocurrencies from being taxed as a foreign currency if passed.

Assistant Treasurer Stephen Jones emphasized the intention of the Australian government’s exempt crypto assets from being regarded as a foreign currency for tax purposes. However, this rule does not affect the collection of capital gains taxes on crypto held as investments.

The public has been provided with 25 days, from Sept. 6 to Sept. 30, to share their thought on the proposed legislation.

If signed into law, it would change the current definition of digital currency in the Goods and Services Tax (GST) Act — effectively excluding crypto assets from the definition of foreign currency. GST is a broad-based tax levied on goods, services, and items sold or consumed in Australia.

The Treasury said that personal information, including the respondent’s name and address, will be made public if not proactively opted out from the same.

The move to exclude cryptocurrencies as foreign currency is a direct result of El Salvador recognizing Bitcoin (BTC) as a legal tender. With this law, Australia aims to reduce the uncertainty surrounding the taxation of digital currencies.

Argentina’s Mendoza province has begun accepting cryptocurrency to pay taxes and fees. The Mendoza Tax Administration (ATM) stated that allowing crypto payments provide taxpayers an additional opportunity to meet their tax obligations. In addition, the move fulfills its “strategic objective of modernization and innovation.”

From Aug. 24, Mendoza residents can use the ATM’s website to pay taxes using any crypto wallets, including Binance, Bybit and Ripio. The system generates a QR code based on the cryptocurrency selected by the end user, and then exchanges an equivalent amount of stablecoins to Argentine pesos through an unspecified online payment service provider.

 

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