Australia seeks public feedback on crypto tax reporting framework

The Australian Treasury is calling on the public to share their views on the Crypto Asset Reporting Framework (CARF), created by the Organisation for Economic Cooperation and Development (OECD).

CARF is designed to boost international tax transparency by ensuring standardised reporting of cryptocurrency transactions across member nations.

A consultation paper released on November 21 outlines plans to adopt CARF into Australia’s tax laws, emphasising its role in strengthening transparency and combating crypto-related tax evasion.

The Treasury aims to address the challenges posed by the rapid growth of cryptocurrency markets, which have complicated tax compliance and enforcement.

Under CARF, crypto intermediaries—such as exchanges and wallet providers—would need to report specific transaction details, including the sale and purchase of crypto assets, to tax authorities.

Australia’s implementation of CARF is expected to begin in 2026, allowing time for crypto service providers to prepare their systems for compliance.

The first exchanges of data between the Australian Taxation Office (ATO) and other tax authorities could occur by 2027, aligning with global reporting timelines.

To support this transition, the ATO will consult on the technical aspects of reporting, likely using an XML schema to ensure consistency and accuracy in data collection.

Implementing CARF will require legislative amendments and updates to existing Common Reporting Standard (CRS) rules to incorporate crypto-specific provisions.

The Treasury’s paper explores options for reducing compliance costs for businesses while ensuring that the framework effectively addresses tax evasion risks.

Public feedback will guide the government in balancing regulatory goals with practical considerations for crypto asset service providers.

This initiative reflects Australia’s commitment to aligning with global efforts to regulate cryptocurrencies and close tax loopholes in the growing digital asset market.

CARF is part of a broader international movement, with OECD member countries collaborating to create unified standards for monitoring and taxing crypto transactions.

By seeking input from stakeholders, the Australian government hopes to develop a crypto tax framework that ensures transparency, supports fair taxation, and fosters trust in the system.

Interested parties are encouraged to participate in the consultation process to help shape the future of crypto regulation and tax compliance in Australia.