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Australian government release a new update on crypto tax

Australian government

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TL;DR

  • Australian government release a new update on crypto tax
  • The country clarifies its position on BTC
  • Australia can still make changes to the regulation

The Australian government has announced that Bitcoin will continue to be seen as a digital asset and not categorized as assets taxed. This new update is coming from speculation on how the new government will treat the asset. With this new update, the new Australian government led by Anthony Albanese will be hoping to have the crypto population by his side. This new update is also coming at a time when countries have chosen to adopt the asset officially.

Australian government clarifies position on BTC

The Australian government is seeking to clarify its position on the digital asset, with countries moving closer to adopting it officially. This means that the country is entirely showing that it will not change the asset category despite these updates. The new budget was released on Tuesday and said that Bitcoin would continue to maintain its current category.

This also means it will be subjected to the same taxing system as other digital assets. In Australia, holders of digital assets are mandated to pay capital gains tax, provided their digital assets can be classified as investments. The document claimed to quash any uncertainty that may have arisen due to El Salvador installing the asset as a legal tender.

Australia can still make changes to the regulation

According to a statement from one of the executives at the taxation office in the country, El Salvador’s move regarding BTC has done little to change their minds as to how they should see the digital asset. He claimed that the office has always claimed that Bitcoin is a digital asset and nothing more. Australia treats foreign currency tax based on the revenue instead of the capital. They see digital assets like Bitcoin as instruments for investing instead of foreign currency. This classification reiterates that traders only need to pay capital gains tax on their assets.

Australia charges investors 45% as income tax on the digital asset. Meanwhile, the country also gives investors a massive 50% discount on income tax provided the assets are over a year. Meanwhile, other foreign currencies are charged at a reduced rate of 23% for tax. The executive also noted that the board is still looking into the regulations and could make changes at any time. The Australian government has been quiet on releasing a CBDC, but it doesn’t mean that work is not going on behind the scene.

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Owotunse Adebayo

Adebayo loves to keep tab of exciting projects in the blockchain space. He is a seasoned writer who has written tons of articles about cryptocurrencies and blockchain.

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