Australia’s Treasury Department has reached out to the public for consultation about a bill that would take cryptocurrency out of taxation as a foreign currency if passed.
In a press release, Deputy Treasurer Stephen Jones outlined the intention of the Australian government to exclude crypto assets from being treated as foreign currency for tax purposes. However, the law will have no effect on the collection of capital gains taxes on cryptos held as investments.
The public had 25 days from September 6 to September 30 to give their opinion on the bill.
If enacted, the law would see amendments to the existing definition of digital currency in the Goods and Services Tax (GST) Act – thus excluding crypto-assets from the definition of foreign currency. GST is a general tax levied on goods, services and goods sold or consumed in Australia.
The Treasury noted that the defendant’s personal information, including names and addresses, would be made public if it is not actively removed.
The decision to phase out the cryptocurrency as a foreign currency is a direct result of El Salvador’s adoption of bitcoin (BTC) as legal tender. Australia plans to reduce the potential uncertainties related to the taxation of cryptocurrencies through this law.
Mendoza, a province of Argentina, has started accepting crypto for taxes and fees. The Mendoza Tax Authority (ATM) said allowing cryptocurrency payments gives taxpayers an additional option to comply with tax obligations. In addition, the move fulfills its “strategic objective of modernization and innovation”.
Starting August 24, residents of Mendoza can access the ATM website to pay taxes using any crypto wallet including Binance, Bybit and Ripio. The system generates a QR code based on the cryptocurrency chosen by the end user, which then converts an equivalent amount of stable coins into Argentine pesos through an undisclosed online payment service provider.