Summary
Transacting with bitcoins is akin to a barter arrangement, with similar tax consequences.
The ATO’s view is that Bitcoin is neither money nor a foreign currency, and the supply of bitcoin is not a financial supply for goods and services tax (GST) purposes. Bitcoin is, however, an asset for capital gains tax (CGT) purposes.
The records you require in relation to bitcoin transactions are:
a. the date of the transactions
b. the amount in Australian dollars (which can be taken from a reputable online exchange)
c. what the transaction was for, and
d. who the other party was (even if it’s just their Bitcoin address).
Given this statement, I’ll be making a motion tomorrow that PPAU may accept Bitcoin donations, provided we get all the information required by the AEC in the process.
