The ATO on Wed 17.12.2014, issued the following Taxation Determinations:
- TD 2014/25 – It states that Bitcoin is not a “foreign currency” for the purposes of Div 775 of the ITAA 1997.
- TD 2014/26 – It says that Bitcoin is a “CGT asset” for the purposes of s 108-5(1) of the ITAA 1997.
- TD 2014/27 – It indicates that when held for the purpose of sale or exchange in the ordinary course of a business, Bitcoin is trading stock for the purposes of s 70-10(1) of the ITAA 1997.
- TD 2014/28– It states that the provision of Bitcoin by an employer to an employee in respect of their employment is a property fringe benefit for the purposes of s 136(1) of the FBTAA.
The Determinations were previously issued as Draft TDs 2014/D11-14 and is largely the same.
- GSTR 2014/3 (GST: the GST implications of transactions involving bitcoin) which considers whether bitcoin is “money” as defined in s 195-1 of the GST Act and whether it is a “financial supply” under s 40-5(1) of the GST Act. The Ruling states that a transfer of bitcoin is a “supply for GST purposes” as bitcoin is not “money” for the purposes of the GST Act [and thus a payment for a supply with bitcoin creates a ‘barter’ transaction where both supplies are subject to GST]. It also states that a supply of bitcoin is not a “financial supply” and therefore is not input taxed. It was previously issued as Draft GSTR 2014/D3 and contains changes.
DATE OF EFFECT: Both the TD’s and the GSTR apply before and after this date of issue.
[LTN 244, 17/12/14]