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Schedule 1—GST treatment of digital currency

Schedule 1 GST treatment of digital currency

   

A New Tax System (Goods and Services Tax) Act 1999

1  Subsection 9-10(4)

Repeal the subsection, substitute:

             (4)  However, supply does not include:

                     (a)  a supply of * money unless the money is provided as * consideration for a supply that is a supply of money or * digital currency; or

                     (b)  a supply of digital currency unless the digital currency is provided as consideration for a supply that is a supply of digital currency or money.

2  Subsection 9-85(2)

Repeal the subsection, substitute:

             (2)  In working out the * value of a * taxable supply, any amount of the * consideration for the supply that is expressed in:

                     (a)  a currency other than Australian currency; or

                     (b)  * digital currency;

is to be treated as if it were an amount of Australian currency worked out in the manner determined by the Commissioner.

3  Transitional—preserving existing determinations

An instrument made under subsection 9-85(2) of the A New Tax System (Goods and Services Tax) Act 1999 that is in force immediately before the commencement of this Schedule continues in force (and may be dealt with) as if it had been made under that subsection as amended by this Schedule.

4  Subsection 11-10(3)

Repeal the subsection, substitute:

             (3)  However, acquisition does not include:

                     (a)  an acquisition of * money unless the money is provided as * consideration for a supply that is a supply of money or * digital currency; or

                     (b)  an acquisition of digital currency unless the digital currency is provided as consideration for a supply that is a supply of digital currency or money.

5  Subsection 78-10(1)

Repeal the subsection, substitute:

             (1)  An insurer has a decreasing adjustment if, in settlement of a claim under an * insurance policy, the insurer makes one or more of the following:

                     (a)  a payment of * money;

                     (b)  a payment of * digital currency;

                     (c)  a supply.

6  Subsection 78-15(4) (method statement, step 1, paragraph (a))

After “ * money”, insert “, or * digital currency,”.

7  Subsection 78-20(1)

Repeal the subsection, substitute:

             (1)  If, in settlement of a claim under an * insurance policy, an insurer makes one or more of the following:

                     (a)  a payment of * money;

                     (b)  a payment of * digital currency;

                     (c)  a supply;

the payment or supply is not treated as * consideration for an acquisition made by the insurer.

8  Subsection 78-35(1)

Repeal the subsection, substitute:

             (1)  If, in settlement of a claim made by an insurer in the insurer’s exercising of rights of subrogation in respect of an * insurance policy, an entity that is not insured under the policy makes one or more of the following:

                     (a)  a payment of * money;

                     (b)  a payment of * digital currency;

                     (c)  a supply;

the payment or supply is not treated as * consideration for a supply made by the insurer (whether or not the payment or supply is made to the insurer) or by the entity insured.

9  Subsection 78-45(1)

Repeal the subsection, substitute:

             (1)  If, in settlement of a claim under an * insurance policy, an insurer makes one or more of the following:

                     (a)  a payment of * money;

                     (b)  a payment of * digital currency;

                     (c)  a supply;

the payment or supply is not treated as * consideration for a supply made by the entity insured, or by any entity (other than the entity insured) that was entitled to an input tax credit for the premium paid for the insurance policy.

10  Subsection 78-75(1)

Repeal the subsection, substitute:

             (1)  If, in settlement of a claim made by an insurer in the insurer’s exercising of rights of subrogation in respect of an * insurance policy, an entity that is not insured under the policy makes one or more of the following:

                     (a)  a payment of * money;

                     (b)  a payment of * digital currency;

                     (c)  a supply;

the payment or supply is not treated as * consideration for an acquisition made by the entity.

11  Paragraph 78-110(a)

Repeal the paragraph, substitute:

                     (a)  an entity makes one or more of the following:

                              (i)  a payment of * money;

                             (ii)  a payment of * digital currency;

                            (iii)  a supply;

                            in compliance with a judgment or order of a court relating to:

                            (iv)  a claim under an * insurance policy; or

                             (v)  a claim by an insurer in exercising rights of subrogation in respect of an insurance policy; or

                            (vi)  a claim for compensation under a * statutory compensation scheme; and

12  Paragraph 79-65(1)(c)

Repeal the paragraph, substitute:

                     (c)  an entity makes one or more of the following in settlement of the operator’s claim:

                              (i)  a payment of * money;

                             (ii)  a payment of * digital currency;

                            (iii)  a supply;

13  Paragraph 79-90(1)(a)

Repeal the paragraph, substitute:

                     (a)  a judgment or order of a court relates to a claim for compensation under a * compulsory third party scheme; and

                    (aa)  an entity makes one or more of the following in compliance with the judgment or order:

                              (i)  a payment of * money;

                             (ii)  a payment of * digital currency;

                            (iii)  a supply; and

14  Paragraph 79-90(2)(a)

Repeal the paragraph, substitute:

                     (a)  a judgment or order of a court relates to a claim by an * operator of a compulsory third party scheme exercising rights to recover from an entity in respect of a settlement made under the scheme; and

                    (aa)  an entity makes one or more of the following in compliance with the judgment or order:

                              (i)  a payment of * money;

                             (ii)  a payment of * digital currency;

                            (iii)  a supply; and

15  Paragraph 79-90(2)(b)

Omit “another entity”, substitute “an entity”.

16  Subsection 79-95(3) (method statement, step 1, paragraph (a))

After “ * money”, insert “, or * digital currency,”.

17  Subsection 80-30(2) (method statement, step 1, paragraph (a))

After “ * money”, insert “, or * digital currency,”.

18  Subsection 80-70(2) (method statement, step 1, paragraph (a))

After “ * money”, insert “, or * digital currency,”.

19  Subsection 126-10(1) (paragraph (b) of the definition of total monetary prizes )

After “ * money”, insert “or * digital currency”.

20  Subsection 126-32(1)

Omit “money”, substitute “ * money or * digital currency”.

21  Subparagraph 134-5(1)(c)(i)

Omit “money”, substitute “ * money or * digital currency”.

22  Subparagraphs 134-5(1)(c)(ii) and (iii)

After “money”, insert “or digital currency”.

23  Subparagraph 134-10(1)(c)(i)

Omit “money”, substitute “ * money or * digital currency”.

24  Subparagraphs 134-10(1)(c)(ii) and (iii)

After “money”, insert “or digital currency”.

25  Paragraph 188-22(a)

After “ * money”, insert “or * digital currency”.

26  Section 188-35

After “ * money”, insert “or * digital currency”.

27  Section 195-1

Insert:

digital currency means digital units of value that:

                     (a)  are designed to be fungible; and

                     (b)  can be provided as * consideration for a supply; and

                     (c)  are generally available to members of the public without any substantial restrictions on their use as consideration; and

                     (d)  are not denominated in any country’s currency; and

                     (e)  do not have a value that depends on, or is derived from, the value of anything else; and

                      (f)  do not give an entitlement to receive, or to direct the supply of, a particular thing or things, unless the entitlement is incidental to:

                              (i)  holding the digital units of value; or

                             (ii)  using the digital units of value as consideration;

but does not include:

                     (g)  * money; or

                     (h)  a thing that, if supplied, would be a * financial supply for a reason other than being a supply of one or more digital units of value to which paragraphs (a) to (f) apply.

28  Section 195-1 (paragraph (a) of the definition of monetary prize )

After “ * money”, insert “or * digital currency”.

29  Section 195-1 (paragraph (b) of the definition of monetary prize )

Repeal the paragraph, substitute:

                     (b)  if the prize is given at a casino—any prize, or part of a prize, in the form of:

                              (i)  money or digital currency; or

                             (ii)  gambling chips that may be redeemed for money or digital currency.

30  Application of amendments etc.

(1)       The amendments made by this Schedule apply in relation to supplies or payments made on or after 1 July 2017.

(2)       Subsection 12(2) (retrospective application of legislative instruments) of the Legislation Act 2003 does not apply in relation to regulations made for the purposes of subsection 40-5(2) or 70-5(1) of the A New Tax System (Goods and Services Tax) Act 1999 , if the regulations:

                     (a)  relate to digital currency; and

                     (b)  are made within 6 months after the day this Act receives the Royal Assent.