By Michael Gord
The blockchain industry is booming in Australia recently after the Australian Tax Office (ATO) announced changes to tax laws in the 2017–2018 budget summary by the Australian government, surrounding how digital currencies are treated in the country. In the few weeks since the announcement, active blockchain communities and events such as RegHack DownUnder have launched across the country, supported by universities and government regulators.
Australia has traditionally held strict tax laws when it comes to how they handle bitcoin and other digital currencies, defining bitcoin as a separate asset class to fiat currency and requiring that transactions involving digital currencies are taxed twice by the Australian Tax Office. The new budget summary removes any general sales tax made more than once in the supply chain using digital currency, in an attempt to “make it easier for new innovative digital currency businesses to operate in Australia” and to grow their nascent community into a global innovation hub.
The summary states, “The Government is committed to establishing Australia as a leading global financial technology (FinTech) hub and is announcing a new package that aims to position our local fintech industry as a world leader.”
This new regulatory environment has spurred growth in …read more