Australian Bitcoin Laws

Bitcoin AustraliaBitcoin is legal in Australia. Surprisingly our friends from down under have provided one of the most measured reactions to the emergence of cryptocurrencies, particularly Bitcoin.

Companies are allowed to trade in bitcoins in Australia and buying or mining bitcoins is not considered to be illegal. The government has stated that it is working towards integrating specific regulations into its laws regarding cryptocurrencies.

Interestingly, the National Australia Bank has distanced itself from bitcoin and disallowed bitcoin related companies from holding trading accounts with them. But many other Australian banks like Westpac and the Commonwealth Bank allow bitcoin companies to hold accounts.

The Reserve Bank of Australia has indicated that they have no problem with cryptocurrencies at this point.

Bitcoin & Tax in Australia

The Australian Taxation Office has stated that income and profits from Bitcoin related services and transactions are taxable.

The Aussie government is on record as saying that buying shares in a company with bitcoin is taxable, as is paying for a goods or service with bitcoins.

Profits derived from bitcoin would also be subject to capital gains tax, which in layman’s terms means that if you buy bitcoins for $400 and sell them for $600 this profit is taxable.

However we have heard reports of Bitcoin transactions in Australia, up to $10,000 being ignored by the taxation office.

The ATO website describes bitcoins as being “akin to a barter arrangement, with similar tax consequences”. It says that Bitcoin is neither money nor foreign currency.

Companies dealing in bitcoins are required to keep a record of the date of transactions, what the transaction was for and who the other party was, even if it is just their Bitcoin address.

The future of Bitcoin in Australia

The general consensus in Australia is that Bitcoin is here to stay and will continue to grow as a form of payment.

Financial experts in Australia are urging the government to embrace bitcoin so it is not forced to go offshore. They want bitcoin classified as a currency so it can work in with the GST system.

At this very moment, the legalities surrounding bitcoin in Australia are not black and white. But you can feel safe, as long as you do your research and remain vigilant, using this form of crypto currency.

Australian Bitcoin ATMS

Currently Australia has three Bitcoin Automatic Teller Machines with these located in Melbourne, Canberra and Sydney. The ATMs are set up by ABA Technology Pty Ltd with the company’s primary focus being on setting these up across the country.

Bitcoin ATMs in Australia are extremely simple to use and completely legal. All you need for your first transaction at a Bitcoin ATM in Australia is your smartphone and a government issued ID card, like a drivers licence or proof of age card.

Victoria Bitcoin ATM Locations

ABA ATM, Melbourne

Opposite Muji, Level 2, Emporium Melbourne

ACT Bitcoin ATM Location

ABA ATM, Canberra

Level 2 Food Court, Bunda St Entry, Canberra Centre

New South Wales Bitcoin Locations

ABA ATM, Sydney

Opposite Cellini’s Cafe, LG Food Court, Sydney Westfield, Cnr Pitt St Mall and Market St