Australian Government: Welfare Applicants Must Declare Bitcoin Assets

The Australian government has mentioned bitcoin on an official pension application form, which local experts say legitimizes digital currency.

AccessTimeIconNov 14, 2014 at 7:30 p.m. UTC
Updated Aug 18, 2021 at 3:29 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

A small addition to a pension application form provoked interest in Australia yesterday, with its request that applicants declare their "cyber currency" assets such as bitcoin.

A printed reference to bitcoin value in a government-issed document such as this, according to a digital currency legal expert, "legitimizes the concept of digital wealth beyond a niche area".

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • On page 14 of the application form published by the Department of Human Services (DHS), bitcoin is listed alongside other potentially valuable assets: "taxi plates, time shares, racehorses, greyhounds, travellers cheques" and collectables such as stamps, wine, art and fishing licences.

    Australian government pension form mentions bitcoin
    Australian government pension form mentions bitcoin

    Amor Sexton, a Sydney-based lawyer with digital currency specialist firm Adroit Lawyers, told CoinDesk bitcoin's appearance on the form was subtle yet significant.

    She said:

    "The concept of 'digital property' or 'digital assets' may seem straightforward but it actually challenges some of the fundamental rules of property law. This recognition of cryptocurrency as an asset is an evolution of property law and the concept of wealth."

    Intangible assets, up to now, had rights that could be enforced – such as intellectual property – but could not be easily traded. They had value and could even be taxed, but they weren't considered to be 'wealth'.

    Bitcoin becoming mainstream

    By including bitcoin and other digital currencies on one of its standard forms, the national government is recognizing these are indeed forms of wealth, and they have also become mainstream as wealth.

    Jason Williams, who heads Australia's local Bitcoin Foundation chapter the Bitcoin Association of Australia, said the organization is "delighted" by bitcoin's inclusion and recognition by a federal government department.

    He agreed the government is making a clear statement legitimizing the concept of cyber currency as form of wealth, and was no longer treating it as a niche.

    "Not only does this legitimize bitcoin as a form of wealth, the very inclusion of bitcoin into official government documents indicates there is real effort by the government into understanding and realising cyber currencies in general, and bitcoin in particular, are technologies that are set to be a permanent part of our financial landscape."

    Australia has established itself as one of the world's most bitcoin-friendly jurisdictions, attempting to understand and accept digital currencies as part of mainstream finance.

    A Senate inquiry into bitcoin will present its findings to parliament in March 2015 and, although its rulings have been questioned by some in the industry as confusing and potentially double-taxing, the Australian Tax Office has also made several statements on digital currency and attempted to integrate it into the current tax regime.

    Australian Parliament image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.