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Australian Mayor Proposes Paying Taxes in Cryptocurrency

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Tom Tate, mayor of the Gold Coast metropolitan city, has suggested that Australians pay their council rates, also known as local property taxes, in cryptocurrency.

“Why can’t we pay cryptocurrency stakes if the risk is not high?” he said.

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He also noted that the council would hire a chief investment officer who would be tasked with promoting “innovation” and exploring “joint ventures” involving the council’s land.

Australian Cryptocurrency Tax Payments and Global Perception

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According to local news reportMayor Tate sees crypto payments as a way to communicate Australia’s innovative virtue while effectively engaging youth. As for the inherent volatility of cryptocurrencies, Tate says it’s “not that bad.”

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Moreover, paying taxes in cryptocurrencies has become a popular topic among pro-cryptocurrency politicians in various jurisdictions.

The mayor of Buenos Aires, Argentina, Horacio Rodriguez Larreta proposed the same approach at the end of April. In late March, Rio de Janeiro announced a similar plan that aims to become the first Brazilian city to accept bitcoin payments as taxes.


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In the US, the state of Colorado plans to accept cryptocurrencies for tax payments from this summer. Florida is considering a similar scheme, and the transcontinental nation of Panama already approved it in April.

However, in light of the recent cryptocurrency crash, volatility, and rampant fraud in the industry, financial experts are advising to approach this matter with caution.

Blockchain Australia Chairman Adam Poulton believes payments could be cut in half or multiples depending on prevailing market conditions.

While Poulton is not entirely against crypto payments, he advises the Australian government to consider a 95:5 payment ratio, where the latter is in crypto.

Another expert, Associate Professor Vallipuram Muthukkumarasami of Griffith University, said that while the council is open to such developments, the cryptocurrency remains “speculative.” He called for further research and education on “new technology”, saying that paying tax on crypto requires “building confidence”.

Cryptocurrency in Australia

Like many other countries, Australia takes a “balanced” approach to cryptocurrencies. Recently, the country’s largest bank, Commonwealth, reportedly suspended its cryptocurrency trading pilot program following the cryptocurrency crash caused by the fall of Terra. And while Australian regulators have finally approved the country’s first bitcoin and ethereum ETFs, the launch has been delayed and acceptance has been hesitant.

This year, Australia is set to develop a cryptocurrency taxation policy while its new prime minister looks into the regulation of cryptocurrencies.

Meanwhile, various businesses in the country have begun accepting cryptocurrency payments. In addition, several influential figures in the country have also spoken out in support of the cryptocurrency. Among the most notable are Treasury Secretary Jane Hume and former federal treasurer Josh Friedenberg.

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Credit : cryptopotato.com

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