The Australian Treasury ministerial department came out to the public for feedback on the proposed legislation. If put into practice, it would shield bitcoins from being taxed as foreign currencies.
Assistant Treasurer Stephen Jones underlined Australia’s intention to prevent cryptocurrency assets. From being treated as a foreign currency for tax reasons in a news release. The proposal, however, would not affect how capital gains taxes are gathered from bitcoin investments.
From September 6 to September 30, the general public will have 25 days to voice their opinions on the proposed legislation.
If passed, the proposal will modify the Goods and Services Tax (GST) Act’s definition of digital currency. Effectively eliminating cryptocurrency assets from the definition of foreign currency. GST is a widespread tax applied to all goods, services, and objects bought, sold, or used within Australia.
The AustralianTreasury stated that unless the respondent deliberately opts out. Their personal information, including name and address, will be made public.
Since El Salvador has recognised Bitcoin (BTC) as a legal tender. The decision to ban cryptocurrencies from used as exchangeable money.
Through this legislation, Australia hopes to reduce any potential issues associated with taxing cryptocurrency.
Mendoza, an Argentine province, began taking cryptocurrency for taxes and fees. According to the Mendoza Tax Administration (ATM), accepting crypto payments gives people another way to meet their tax obligations.
Furthermore, the action satisfies the organization’s own “strategic purpose of modernisation and innovation.”
Mendoza citizens can use any cryptocurrency wallet, including Binance, Bybit, and Ripio, to pay taxes through the ATM’s website starting on August 24.
The technology generates a QR code based on the cryptocurrency the user chooses. Which then uses an unnamed online payment processor. To convert an equivalent amount of stablecoins to Argentine pesos.
Australia’s new government position on cryptocurrency legislation
Jim Chalmers, the Treasurer of Australia, promises his country’s administration of cryptocurrency assets will be improved. And that customers will get protection.
The Australian Labor Party (ALP), three months after the election. Has finally broken its silence on how it intends to address crypto legislation.
A “token mapping” effort was one of the 12 recommendations in a senate inquiry report. From last year on “Australia as a Technology and Financial Center.” Which Treasurer Jim Chalmers revealed.
However, the sector enthusiastically embraces the report, eagerly awaiting to see if the ALP administration will do the same.