Don’t know if you were paying attention earlier this year when the 2017 Budget was announced, but as of today (1 July, 2017) it now makes more sense than ever to start using Bitcoin in your everyday life in Australia.
What Changed About Using Bitcoin?
Before 1 July, spending your Bitcoin on everyday purchases came at a considerable disadvantage. The Australian Government has until now considered Bitcoin a commodity, meaning it was treated differently to your regular money.
When you bought your Bitcoins you had to pay standard GST on the purchase, then when you used your Bitcoin anywhere in Australia you had to pay another lot of GST on top, because you were effectively selling a commodity for Australian dollars. But this is no longer the case, thanks to changes in Bitcoin regulation released with the Federal Budget on 7 May.
Australian Government Backing Innovation
We’ve had a bit of a troubled past in Australia when it comes to cryptocurrency regulation, like the former double GST rule, but things are really starting to change. The government is starting to open up to the technology. For evidence of this you can see this recent interview with the head of ASIC.
These progressive moves being made by the Australian Government are attempting to position us as a leader in blockchain adoption and Financial Technology innovation. The ‘Backing innovation and FinTech‘ factsheet accompanying the budget states:
“From 1 July 2017, purchases of digital currency will no longer be subject to the GST, allowing digital currencies to be treated just like money for GST purposes. Currently, consumers who use digital currencies can effectively bear GST twice: once on the purchase of the digital currency and once again on its use in exchange for other goods and services subject to the GST.”
This is an exciting step in the right direction. And if you want to know how you can get a hold of some Bitcoins, check out our guide to buying your first Bitcoins in Australia.