The Australian Government is going to eliminate the double taxation problem and classify cryptocurrency as the foreign currency when calculating the goods and services tax, GST, the local equivalent to the value-added tax. Beginning next year, Australian citizens won’t have to pay an additional tax on buying and selling cryptocurrencies. The bill has been already approved by the Australian government.
The problem is rooted in 2014, when the law, requiring to consider cryptocurrency not as currency but as goods, was adopted. As a result of this, all use of cryptocurrencies began to be taxed on goods and services tax. This was criticized by IT supporters and other activists, and the country government promised to solve the problem. The this August, the situation was examined, and the Treasury Department suggested several amendments to the existing legislation. According to them the country budget will be adjusted next May, and starting next July, cryptocurrencies will officially acquire foreign currencies status.