No GST on digital currency
The GST Act is being amended to ensure that digital currency, such as Bitcoin, is disregarded for GST purposes unless the supply is made in exchange for a payment of money or digital currency.
To achieve this, a definition of “digital currency” will be inserted into the GST Act. Under the new definition, a digital currency has broadly the same features as legal tender. In particular, the value of a digital currency must derive from the market’s assessment of its value. A digital currency’s value cannot be based on the value of anything else, so it must not have, for example, a value pegged to Australian or United States dollars.
The currency units must be useable as consideration for any type of supply, and must be generally available to the public.
Units will not be considered digital currency if they give the holder benefits (such as memberships or vouchers), other than entitlements incidental to holding the unit or using it as consideration.
When the new definition passes into law, no GST will apply for supplies of digital currency made on or after 1 July 2017.
Until now, GST could be imposed several times on a digital currency.
AcctWeb
Hot Issues
- ‘Results in paying more tax’: ATO warns Australians against early super access
- Employee or Contractor ?
- Inherited assets: what you need to know about pre-CGT v post-CGT investments
- WHS and OHS Regulatory Update: August 2025
- HECS/HELP debt reduction Bill introduced
- Non deductibility of ATO interest charges for businesses
- How safe is your business from scams
- The biggest earthquakes in history : (1905–2025)
- What Terms Should I Include in a Capital Raising Term Sheet?
- Prepare for Div 296 now, accountants warn
- ATO, lawmakers demand urgent action as GST fraud skyrockets
- 5 things smart businesses do to stop copycats
- Do not trust myGov messages
- Regulations have changed for buy now pay later services
- Australian Taxation Office (ATO) warns about misinformation on super changes circulating online
- The rise and fall of the world’s largest economies | GDP Epic Battle (1560–2025)
- ATO hit list 2025 – Key Areas Under Review
- Why Succession Planning Matters for Privately Owned and Wealth Groups in Australia
- Benefits of a business plan
- Roles and Responsibilities in a Business Partnership
- Mixing business and pleasure? Be vigilant this tax season
- 30 June 2025 - Tax Checklist - Small (and Micro) Business
- 3 more GST fraudsters sentenced under ATO’s Operation Protego
- Evolution of Boeing - 1916 - 2025
- ATO - Targeted Areas of Focus 2024-25
- 6 ways to improve your business plan
- Benchmarks for small business
- Beware the early lodgment tax trap, CPA Australia warns
- Tax lawyer flags compliance traps with family trusts
- Superannuation on paid parental leave from 1 July 2025