From next year, Australians will no longer have to pay goods and services tax on cryptocurrency purchases.
Thus, this week, both houses of the Australian Parliament passed a Treasury Laws Amendment (2017 Measures No. 6) Bill 2017, that is to eliminate the double taxation of digital currency. The bill now awaits Royal Assent by Australia’s Governor-General, at which time it will become an Act of Parliament.
As detailed, the bill will amend Australia’s tax system, ensuring that digital currency transactions are not subject to two instances of goods and services tax. Previously, Australian users were subject to taxation on both the purchase of digital currency and the use of digital currency for goods and services subject to GST.
The amendments provide that supplies and acquisitions of digital currency are generally disregarded for the purposes of GST. Consistent with supplies of money, supplies of digital currency are only recognized for the purposes of GST if the supply is made in exchange for money or digital currency.
The bill’s accompanying explanatory memorandum
Basically, in Australia, digital currency is to receive the same tax treatment as foreign currency in order to "decrease reporting burden on businesses that use digital currency".