Australia’s Treasury has initiated public consultation on implementing an international crypto reporting standard aimed at enhancing tax transparency and curbing global tax evasion.
The Plan
The consultation paper, released on Nov. 21, explores the adoption of the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF). This framework establishes standardized rules for collecting and sharing tax data on cryptocurrency transactions between countries.
The government is considering two approaches:
- Full Adoption of CARF: Integrating the framework directly into Australian tax law.
- Tailored Approach: Modifying the framework to meet the Australian Taxation Office’s specific requirements.
OECD’s Global Effort
In 2022, the OECD introduced CARF to counter tax evasion involving crypto assets. By 2023, 47 countries, including Australia, committed to adopting the framework. CARF mandates that crypto exchanges and wallet providers report key transaction data, such as digital asset purchases, to tax authorities.
Implementation Timeline
If approved, the reporting requirements would begin in 2026, allowing enough time for crypto platforms to adjust their systems. This would enable the Australian Taxation Office (ATO) to exchange information with international tax authorities starting in 2027.
Summary Review: Australia is taking steps to align its tax laws with global standards for crypto reporting. By consulting stakeholders, the country aims to implement a robust system to improve transparency and strengthen the fight against tax evasion in the crypto space.
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