Gold Coast Metropolitan Mayor Tom Tait has suggested that Australians could pay their own council rates, otherwise known as a local property tax, in cryptocurrency.
“Why can’t we pay rates on cryptocurrency if the risk is not high?” They said.
He also said that the council would recruit a chief investment officer to work on promoting “innovation” and looking for “joint ventures” that would incorporate the council’s land.
Australia cryptocurrency tax payments and global sentiment
According to a local news report, Mayor Tate sees crypto payments as a way to communicate the innovative qualities of Australia, effectively attracting young people. As for the implied volatility of the cryptocurrency, Tate says it is “not so bad.”
Furthermore, paying taxes in crypto has become a trending topic among pro-crypto politicians in various jurisdictions.
The Mayor of Buenos Aires, Argentina, Horacio Rodriguez Larreta, suggested the same approach in late April. In late March, Rio de Janeiro announced a similar plan, aiming to become the first Brazilian city to accept bitcoin payments for taxes.
In the US, the state of Colorado is planning to take crypto for tax payments starting this summer. Florida is considering a similar plan, while the transcontinental country of Panama approved it only in April.
However, in light of the recent crypto crash, volatility and industry-wide scandals, financial experts recommend to approach such a matter with caution.
The president of Blockchain Australia, Adam Poulton, believes that the payout could either be halved or multiplied depending on current market conditions.
While Poulton is not entirely against crypto payments, he advises the Australian government to consider a 95:5 payout ratio, where the latter is in crypto.
Another expert, Griffith University associate professor Vallipuram Muthukkumarasamy, said the council was open to such developments, but crypto remains “speculative”. He urged further research and education in “new technology”, adding that crypto tax payments require “trust building”.
crypto uptake in australia
Like many other countries, Australia has taken a ‘measured’ approach when it comes to cryptocurrencies. Recently, the country’s largest bank, Commonwealth, suspended its crypto trading pilot program after the crypto crash reportedly led to the collapse of Terra. And even though Australian regulators eventually approved the country’s first bitcoin and ethereum ETFs, the launch was delayed and received half-heartedly.
This year, Australia intends to develop a crypto taxation policy while its new prime minister focuses on crypto regulation.
Meanwhile, various businesses in the country have started taking crypto payments. Additionally, several influential figures in the country have also communicated a pro-crypto stance. Some notable people include the country’s Minister of Finance, Jane Hume, and former Federal Treasurer Josh Frydenberg.
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