So... if a business were to sell bitcoins in Australia - reckon that they should attract GST? Seeing quite a few websites in Australia selling bitcoins - but none charge GST on sales. I'm sure a few would be over the GST threshold. Given that they are selling goods (even though virtual in nature), I think that GST would be applicable. I doubt any of the businesses currently selling in Australia would currently be licenced with an AFSL which I believe is a requirement to trade forex.
has bitcoin been declared a currency in australia by the government yet? i know it has in the usa which has led to a few security exchanges being shut down recently. without a legal precedent it would be difficult to prove but with the governments track record on tax collection i see it as only a matter of time.
Pretty sure there is an exemption from GST on redeemable stored value cards, vouchers, tokens, etc. but I'm not sure if there is a requirement that the value be for a fixed amount. GST is typically charged on any service/admin fee attached to the sale of these items, unless the fee is deemed a "financial service" by the ATO. For example: $100 Pre-paid VISA card from the post office: $100 (no GST) + $5.95 admin fee (inc. GST of ~$0.54). The issue is whether Bitcoins are goods or stores of value. You could make an argument either way, but I'd be inclined to view them as stores of value (even though their value fluctuates). If you could show that BTC could be "consumed" rather than simply traded over and over and over again then I'd say they'd more likely be considered goods.
