The Australian Treasury is currently seeking input on the implementation of the crypto-asset reporting framework within its domestic tax laws.
In order to solicit feedback regarding the implementation of an international reporting standard for cryptocurrency transactions, the Treasury Department of Australia has published a consultation document. The initiative is a component of a more comprehensive endeavor to combat global tax evasion and improve tax transparency.
The consultation, which was initiated on November 21, is dedicated to the implementation of the Crypto-Asset Reporting Framework (CARF) of the Organisation for Economic Co-operation and Development (OECD). The OECD framework establishes standardized regulations for the collection of tax data on crypto-asset transactions and for the sharing of this information among tax authorities.
The paper offers two distinct alternatives for the implementation of CARF: either incorporating the framework into Australian tax law or adopting a more customized approach that is specifically designed to meet the requirements of the Australian Taxation Office.
The OECD, an intergovernmental organization that establishes international standards, devised and released CARF in 2022 to address global tax evasion through the use of crypto assets.
In order to combat global tax evasion through crypto assets, the OECD established CARF in 2022. A total of 47 countries, including Australia, pledged to implement the framework in 2023. It is anticipated that the initiative will improve the visibility of crypto transactions and facilitate the exchange of international information.
Australia is currently in the process of consulting with stakeholders in order to integrate CARF into its tax law.
The OECD’s CARF will require crypto exchanges and wallet providers to disclose specific crypto transactions to the appropriate tax authorities. Digital asset acquisitions would comprise the data collected.
The consultation paper indicates that CARF reporting requirements may commence in 2026. The Treasury issued the following statement:
“It is anticipated that CARF reporting requirements will be implemented in 2026, subject to a definitive decision by the government, to facilitate the initial exchanges between the ATO and other tax authorities by 2027. Future legislative priorities would also affect this timeframe.” The Treasury also stated that this timeframe will allow reporting crypto providers to update their systems with sufficient advance time.
In addition to Australia, other jurisdictions have begun to incorporate CARF into their domestic laws. Canada declared on April 18 that it would implement the framework by 2026. Switzerland publicly solicited input from the public on May 18 regarding the implementation of the standards in its local tax laws. Additionally, the nation intends to implement the framework to improve the transparency of taxation for crypto assets.
Under the pretense of a new tax law, New Zealand implemented the framework. The New Zealand Minister of Revenue submitted a proposition on August 27 to incorporate the framework into the country’s laws. There is an expectation that crypto providers will begin collecting information on April 1, 2026, and transmit it by June 30, 2027.
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