So generally taxes are being monitored while the bitcoin players count huge profits. However the necessary laws have to be applied to prevent any illegal and unsafe activity.
But the ato doesn t seem to be convinced with this freedom of crypto miners or australian business owners.
Bitcoin australia legal. Bitcoin is legal in new zealand. Cryptocurrency mining is legal in australia as long as you use your own resources such as electricity and processing power. Cryptocurrencies can be used as salary payments in new zealand.
The legal status of bitcoin and related crypto instruments varies substantially from state to state and is still undefined or changing in many of them. So if you are mining bitcoin in australia don t forget to register and pay your taxes. In july 2017 the country officially confirmed that the leading cryptocurrency was just like money and would not be subject to double taxation either.
Other transactions within the bitcoin scheme such as selling bitcoins to a third party will also incur taxes. However since the inception of bitcoin there have been multiple times when the legality of this cryptocurrency was questioned. Whereas the majority of countries do not make the usage of bitcoin itself illegal its status as money or a commodity varies with differing regulatory implications.
In australia the ato or australian taxation office thinks that cryptocurrency in general cannot be considered as a real currency. Bitcoin has been completely legal in australia as far back as 2013. Although the australian securities and investments commision asic has not released any public guidance on bitcoin.
The australian taxation office has also publicly stated that they consider bitcoin to be a commodity and not a currency. Similar to canada australia considers bitcoin neither money nor a foreign currency with the australian taxation office ato ruling it an asset for capital gains tax purposes. Coindance bitcoin can be used as a form of payment in new zealand.
The ato introduced lines that add taxation to the cryptocurrency mining activities as well. Income in the form of cryptocurrencies is taxed. According to wikipedia on the legality of bitcoin by country bitcoin in australia is marked as legal since december 2013 by the governor of the reserve bank of australia rba.
Bitcoin is an intriguing invention that tests the existing definitions and classifications of money and currency under the australian legal framework.