ATO Ruling on Bitcoins: What you need to know!
Haven’t heard of Bitcoin? It is a new method of payment in lieu of normal currency and it appears the ATO is now taking this other currency seriously.
With the ATO releasing draft rulings in which they have set out the ATO’s position, in that bitcoins are deemed to be either a capital gains tax asset or trading stock, this depending on whether the taxpayer is a business or an individual.
Any individual with bitcoins will most likely have no GST or tax implications on any transactions of bitcoins worth less than $10,000.
Business will need to treat bitcoins in a similar manner as to a barter transaction or as a trading stock with the relevant GST issues.
If you any other questions, please feel free to email us.