The Australian government’s recent decision to remove the double-taxation of digital currency payments, effective from 01 July 2017, has been welcomed by the Australian Digital Currency & Commerce Association (ADCCA).
"Removal of the double-taxation of digital currency transactions is an important reform that will support the faster growth of this innovative sector of the economy", said ADCCA CEO Nicholas Giurietto said in a statement.
ADCCA said that it has worked both formally and informally with Treasury officials to help build an understanding of the digital currency and blockchain sector and to help formulate the best approach to implement this reform.
"This GST reform is the first outcome of constructive engagement with government across a number of areas to support the growth of blockchain businesses in Australia", said Giurietto. "We look forward to further collaboration to boost Australia's competitiveness in this area even further."
Giurietto said that the move will not only benefit digital currency businesses in the country, but also the wider blockchain innovation sector. He explained:
"Removal of the double application of GST supports the development of smart contracts and micro-payments that will underpin new business models using blockchain technology."
ADCCA Chairman, Ron Tucker, also welcomed the changes saying:
"The original reason that we formed ADCCA was to advocate for this much-needed change. Although, ADCCA has broadened its scope to encourage blockchain innovation more broadly, it is very pleasing to see that this first goal of our association will soon be achieved."
