Australia: Consultation opened for taxation on digital assets and transactions

On 17 August 2022, the Australian Government published its consultation guide regarding the taxation of digital assets and transactions. The consultation process will last until 30 September 2022. The consultation guide includes an overview of the current legislative foundation regarding digital asset taxation, relevant government reports and questions for the consultation process. In particular, the consultation guideline states that Bitcoin is not considered a foreign currency according to the Income Tax Assessment Act 1997 and notes that crypto-assets would fall under the Capital Gains Tax (CGT) provisions. In its consultation, the Board aims to gather information on the issues regarding taxation stakeholders including, digital payment providers, investors and businesses, are experiencing. The Board is expected to publish a report on its finding by 31 December 2022.