5 May 2016

Government response to Senate Inquiry into Digital Currency

Minister for Small Business and Assistant Treasurer, the Hon Kelly O’Dwyer MP, today announced the release of the Government’s response to the Senate Economics References Committee’s report on the Inquiry into Digital Currency – Digital currency — game changer or bit player.

“The Turnbull Government is committed to fostering innovation in the financial sector and the financial technology (FinTech) industry is integral to this goal,” Minister O’Dwyer said.

“FinTech innovations like digital currencies and the technologies that underpin them have the potential to aid the transformation of our economy in a positive way and increase Australia’s international competitiveness.

“The response to the Committee’s report builds on the Turnbull Government’s ongoing work to support the development of the FinTech industry in Australia.

“In the Government’s Backing Australian FinTech statement in March, we announced our commitment to addressing the ‘double taxation’ of digital currencies under the GST. We released a discussion paper on 3 May seeking views on the best option to address the current taxation treatment and will work with the industry on implementing a solution.

“This addresses a key recommendation of the Committee’s report and accordingly has been reflected in the Government’s response.

“The Government’s FinTech Advisory Group, which is advising the Treasurer on issues important to Australia’s FinTech industry, will also assist the Government in addressing other recommendations of the Committee’s report,” Minister O’Dwyer said.

The Government’s response to the Committee’s report is available on the Treasury website