Linden Dollar Income Taxable in Australia

As we head into tax season here in Australia, we learn that Linden Dollar income has been determined to be taxable income by the Australian Taxation Office. Other governments, including our Scottish friend Gordos' lot are looking into it.

The always entertaining Laurel Papworth has the scoop.

“The real world value of a transaction may form part of your taxable income, even if it is in Linden dollars,” a spokeswoman for the Australian Tax Office told the paper. “If you are getting a monetary benefit then it’s not treated any differently - normal rules apply.”

Spoil sports and spoken like a true bureaucrat.

In Britain and the United States, income earned in a virtual currency such as Linden dollars is only taxable after it is converted into a real-life currency. A U.S. Congressional committee is investigating whether new laws need to be created to deal with the rapid growth of worlds like Second Life, although the committee’s chairman has said he is opposed to any “premature attempt to impose a tax on virtual economies.”

Nothing is free in this world. I will have to watch my dodgy SL transactions. I will see if Tom Paine can set me up with a tax haven island on SL.

Also interesting how few Australians are on Second Life. Around 3,000 total members. It may be a function of the shocking broadband speeds here. You also need a pretty woop dee doo computer to run it effectively. Certainly when you visit Australian focused sites, they are usually pretty empty.