Bitcoin

Aussie Federal Budget Says Bitcoin Won’t Be Taxed Like A Foreign Currency

The first federal budget under Anthony Albanese’s administration said that Bitcoin (BTC) will continue to be considered a digital asset and will not be taxed as a foreign currency.
Aussie Federal Budget Says Bitcoin Won't Be Taxed Like A Foreign Currency 4

The government budget was presented on October 25 and said that Bitcoin would be subject to the existing tax treatment of digital currencies, including capital gains tax treatment if held as an investment.

According to the budget document:

“This measure removes uncertainty following the decision of the Government of El Salvador to adopt Bitcoin as legal tender and will be backdated to income years that include 1 July 2021.”

This explanation follows El Salvador‘s acceptance of Bitcoin as legal money in September of last year, with the Australian government effectively ruling out a change in categorization even though it is used as a currency in El Salvador and the Central African Republic.

Bitcoin investors will be liable to capital gains tax obligations if they earn from the sale of a digital asset under the definition of a digital asset.

Aussie Federal Budget Says Bitcoin Won't Be Taxed Like A Foreign Currency 5

Profits are normally included in one’s income tax at a maximum rate of 45%, so the percentages vary. However, if the item has been held for more than a year, investors obtain a 50% tax reduction from a capital gains tax event.

In comparison, the overall tax rate on income from foreign currency investment is 23.5%, which would represent significant savings to investors if BTC were classified in this category.

Central bank digital currencies (CBDCs) are government-backed currencies that will be subject to foreign currency rules.

Aussie Federal Budget Says Bitcoin Won't Be Taxed Like A Foreign Currency 6

The Reserve Bank of Australia (RBA) issued a white paper in late September presenting a strategy for a CBDC pilot project named eAUD in collaboration with the Digital Finance Cooperative Research Centre (DFCRC).

The pilot report is likely to be issued in the middle of next year, and the RBA will be in charge of eAUD issuance, while the DFCRC will oversee platform development and installation.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Best Cryptos to Invest in December 2024: Qubetics Surges Past $2.6M as Solana Records Big Whale Pump and Polkadot Aims for $6

Best Cryptos to Invest in December 2024: Qubetics surges past $2.6M, Solana’s whale pump ignites…

1 hour ago

Bitcoin Trader Turned $100M in His 20s—Now Reveals 5 Altcoins to Build a $50M Portfolio, With Memecoins Leading the Way!

As Bitcoin reaches unprecedented heights and the market surges, he's highlighting five altcoins poised for…

3 hours ago

Which Crypto Will Explode in the 2024-2025 Bull Run?

With the crypto market reaching new peaks, many are eager to discover digital currencies poised…

3 hours ago

Dogecoin and Shiba Inu Approach $1, but All Eyes Are on XYZVerse’s Push to $10!

XYZVerse, blending sports passion with meme energy, is set to make a significant impact, uniting…

3 hours ago

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

4 hours ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

5 hours ago

This website uses cookies.