Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Scott Morrison MP)
General outline and financial impact
GST treatment of digital currency
Schedule 1 to this Bill amends the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) to ensure that supplies of digital currency receive equivalent goods and services tax (GST) treatment to supplies of money, particularly foreign currency.
Date of effect: These amendments apply to supplies and payments made on and after 1 July 2017.
Proposal announced: These amendments implement the measure announced in the 2017-18 Budget as 'GST - removing the double taxation of digital currency'.
Financial impact: This measure is estimated to have an unquantifiable impact on GST revenue over the forward estimates period, comprising:
Human rights implications: This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - paragraphs 1.56 to 1.59.
Compliance cost impact: The measure decreases the tax and reporting burden on businesses that use digital currency.
Deductible gift recipient
Schedule 2 to this Bill amends the Income Tax Assessment Act 1997 (ITAA 1997) to include the Centre For Entrepreneurial Research and Innovation (CERI) on the list of deductible gift recipients (DGRs). This allows members of the public to make tax deductible donations to the CERI.
Date of effect: The amendments apply to gifts made to the CERI after 1 January 2017 and before 31 December 2021.
Proposal announced: Not previously announced.
Financial impact: This measure is estimated to have the following financial impact ($m) over the forward estimates period:
.. not zero but rounded to zero
Human rights implications: This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.13 to 2.16.
Compliance cost impact: Nil.