The Government of Australia publishes a new budget paper which reveals that the country plans to introduce legislation to clarify its stand on digital currencies such as Bitcoin.
The Australian Government wants to clarify that digital currencies continue to be excluded from the country’s income tax treatment of foreign currency.
In its new budget paper, the Australian government said that they will maintain the current tax treatment of digital currencies, including the capital gains tax treatment where they are held as an investment.
Though, this exclusion does not apply to digital currencies issued by, or under the authority of, a government agency. These digital currencies under question are known as CBDC’s and Australia will continue to classify them as foreign currency and tax accordingly.
It also clarifies that the country won’t follow El Salvador’s example of allowing the cryptocurrency to be used as legal tender.
The exclusion does not apply to digital currencies issued by, or under the authority of, a government agency, which continues to be taxed as foreign currency.
