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Australia’s Treasury seeks input on implementing the crypto-asset reporting framework within its domestic tax laws.
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Australia has released a consultation paper seeking input on applying an international reporting standard for crypto assets.
Australia’s Department of the Treasury started a consultation on Nov. 21 on how it would implement the Organisation for Economic Co-operation and Development’s (OECD) Crypto Asset Reporting Framework (CARF), a set of standardized rules for collecting tax information on crypto-asset transactions and information exchange between tax authorities.
The paper presents two different options for implementing CARF. This includes adopting the framework into Australian tax law or taking a more tailored approach that will target the needs of the Australian Taxation Office.
Adopting an international standard on crypto reporting
In 2022, the OECD, an intergovernmental organization creating international standards, developed and released CARF to combat global tax evasion using crypto assets. The framework gives tax authorities better visibility on crypto users and transactions.
In 2023, 47 countries pledged to apply CARF to their local law systems, adopting an international standard on information exchange. The countries agreed to implement exchange agreements for information exchanges to begin by 2027.
Australia is one of the countries that pledged to implement the new framework for crypto reporting. Because of this, the country is moving forward with its goal of integrating CARF into its tax law by consulting with stakeholders.
OECD’s CARF will mandate crypto exchanges and wallet providers to report specific crypto transactions to the relevant tax authorities. The information collected would include digital asset purchases.
According to the consultation paper, CARF reporting requirements may start in 2026. The Treasury wrote:
“Subject to a final decision of Government, it is envisaged that CARF reporting requirements would commence from 2026, to ensure the first exchanges between the ATO and other tax authorities could take place by 2027. This timeframe would also be subject to future legislative priorities.”
The Treasury also said this timeframe will provide enough lead time for reporting crypto providers to update their systems.
Related: G20 moves forward with international crypto framework
Other countries implementing CARF into tax laws
Apart from Australia, other jurisdictions have also started integrating CARF into their domestic laws. On April 18, Canada announced it would apply the framework by 2026. On May 18, Switzerland issued a public consultation for applying the standards to its local tax laws. The country also intends to implement the framework to enhance tax transparency for crypto assets.
Meanwhile, New Zealand introduced the framework in a new tax bill. On Aug. 27, the New Zealand Minister of Revenue submitted a proposal to implement the framework into its laws. Crypto providers are expected to collect information starting on April 1, 2026, and submit them by June 30, 2027.
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This article first appeared at Cointelegraph.com News
