Australia is considering adopting the OECD's Crypto Asset Reporting Framework (CARF) from 2026, joining 46 other countries to enhance global cryptocurrency tax transparency.
The Australian Treasury officially launched the public consultation process regarding the adoption of the OECD's Crypto Asset Reporting Framework (CARF) on November 21. This move reflects the Australian government's efforts to enhance transparency in the cryptocurrency sector and prevent tax evasion using digital assets.
CARF, developed and published by the OECD in 2022, establishes a set of standardized rules for collecting cryptocurrency transaction data. This framework requires exchanges and cryptocurrency wallet service providers to report detailed information about users' transactions to tax authorities. The data will then be shared among member countries, facilitating cross-border oversight and preventing the use of cryptocurrency for illegal purposes. By 2023, 47 countries, including Australia, had committed to implementing CARF.
Options for adoption and implementation roadmap
The consultation document published by the Australian Treasury proposes two options for implementing CARF. The first option is to directly integrate this standard framework into Australia's current tax laws. The second option is to develop a separate method that better aligns with the specific system and needs of the Australian Taxation Office (ATO). Public consultation will help the Treasury gather feedback from stakeholders, leading to a final decision on how to implement CARF most effectively.
The reporting requirements under CARF are expected to take effect from 2026, allowing the ATO to start exchanging cryptocurrency tax information with tax authorities worldwide by 2027. However, the Treasury also noted that the roadmap may change depending on future legislative priorities.
The transition period is designed to ensure that cryptocurrency service providers have sufficient time to prepare and upgrade their systems to meet the new reporting requirements. Providing adequate preparation time is seen as a key factor to ensure the smooth implementation of CARF without disrupting cryptocurrency market operations.
The trend of adopting CARF is spreading globally. Canada has announced plans to implement this framework starting in 2026, while Switzerland is also conducting public consultations on integrating CARF into local tax law. New Zealand has also included CARF in its draft new tax legislation, with plans to start collecting information from April 1, 2026, and submit the first report by June 30, 2027.