A Senate Economics References Committee review into digital currencies in Australia has found they should be treated like any other currency for the purposes of the Goods and Services Tax (GST).
The result is a rebuff to the position of the Australian Taxation Office (ATO), which ruled in 2014 hat Bitcoin was neither money nor a foreign currency and was liable for the GST, as well as other taxes.
The ATOs guidance was met with dismay by Australias nascent Bitcoin business community last year, with many startups warning they would have to move overseas to avoid the debilitating financial penalty.
The committee received submissions from 48 groups and individuals, including Ripple Labs, an online payment transfer company that is currently working with the Commonwealth Bank of Australia. In its submission, the company said the lack of global uniformity in the regulation of digital currencies is creating serious uncertainty for the Fintech industry.
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