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

Bitcoin Trading Volume Skyrockets to $145 Billion as Retail Investors Return

Bitcoin trading volume has surged to an all-time high of $145 billion in the last…

32 minutes ago

Italy Considers Reducing Proposed Italy Crypto Tax to 28%

Italy considers lowering its proposed Italy crypto tax increase to 28% from an initial 42%,…

4 hours ago

Bitcoin Spot ETF Inflows Reach $818M Amid 5-Day Positive Streak

Bitcoin Spot ETF Inflows Hit $818M as Net Inflow Streak Extends to 5 Days, with…

4 hours ago

Elon Musk Invests $200M in Trump, Treats Government Like X (Twitter)

Elon Musk applies his X (Twitter) management style to politics. His political strategies, including voter…

5 hours ago

PayPal Stablecoin PYUSD Now Available for Cross-Chain Trading via LayerZero

PayPal stablecoin PYUSD can now transfer seamlessly between Ethereum and Solana via LayerZero.

6 hours ago

New Department of Government Efficiency Will Be Led by Musk

President-elect Trump plans to establish the Department of Government Efficiency, led by Elon Musk and…

7 hours ago

This website uses cookies.