The Australian Treasury is seeking public input on adopting a new system for reporting cryptocurrency activities. In a paper released on November 21, it outlined the Crypto Asset Reporting Framework (CARF), an international standard developed by the OECD to make crypto taxes more transparent and equitable. The government views CARF as a key step in enhancing tax tracking and promoting compliance.
The consultation paper also explores whether adopting the OECD's crypto tax model is suitable for Australia, aiming to implement the framework without adding unnecessary costs or complexity for users. It highlights that adopting CARF will require updates to Australia’s tax policies.
As the country’s crypto market rapidly expands, the government seeks to close tax gaps and address challenges like evasion and loopholes. CARF, developed by the OECD, provides a standardized system for reporting crypto-related data globally. This approach simplifies managing crypto activities and identifying tax defaulters, making it harder for individuals and companies to evade their obligations.
The Australian Treasury is inviting public feedback on adopting a new system for reporting cryptocurrency activities. In a paper released on November 21, the Treasury introduced the Crypto Asset Reporting Framework (CARF), an international standard developed by the OECD to make crypto taxation clearer and more equitable. The government sees CARF as aligning with its broader goals of improving tax tracking and ensuring compliance.
A Shift in Tax Reporting
The consultation paper examines whether adopting the OECD’s crypto tax model is the right fit for Australia, focusing on implementing it without creating excessive costs or complexities for locals. However, adopting CARF will require updates to Australia’s tax policies to address the challenges posed by its rapidly growing crypto market, such as tax evasion and loopholes.
CARF offers a global standard for reporting crypto transactions, enabling countries to manage crypto activities more efficiently and identify defaulters, thus reducing the risk of tax evasion.
Under CARF, exchanges and wallet providers must report detailed transaction data, including purchases and sales of digital assets, to tax authorities.
Timeline for Implementation
Australia aims to implement CARF by 2026, with the first data exchanges between the Australian Taxation Office (ATO) and other countries expected in 2027. However, this timeline depends on government approval and legislative priorities. In the meantime, crypto exchanges will need to upgrade their systems to comply with the new framework. The ATO will also seek public input on the specifics of reporting requirements.