Australia Seeks Public Input on Adopting Global Crypto Reporting Standards

Australia's Treasury Department is seeking public input on how to implement a global cryptocurrency transaction reporting standard as part of its effort to enhance tax transparency and reduce international tax evasion.

The focus of the consultation, which started on November 21, revolves around the adoption of the OECD’s Crypto-Asset Reporting Framework (CARF). CARF is designed to standardize how crypto-asset transactions are reported, helping tax authorities around the world share and access crucial data.

The OECD introduced CARF in 2022 to tackle the issue of tax evasion facilitated by cryptocurrencies. By 2023, 47 countries, including Australia, committed to incorporating the framework into their tax regulations. Now, Australia is considering two possible approaches for CARF’s adoption: either fully incorporating the framework into Australian tax law or tailoring it to meet the specific needs of the Australian Taxation Office (ATO).

CARF mandates that crypto exchanges and wallet providers report various crypto transactions to the relevant tax authorities. This includes detailed information on digital asset purchases. The Treasury’s paper outlines a timeline for CARF’s potential implementation, which could begin in 2026. The goal is to enable information exchanges between the ATO and other international tax bodies by 2027. The additional time would allow crypto providers to make necessary adjustments to their reporting systems.

Other countries have also started aligning their national tax laws with the OECD’s CARF. Canada plans to implement the framework by 2026, and Switzerland is already in the process of consulting the public on how to integrate the framework into its tax system. Similarly, New Zealand has included CARF in a new tax bill, with the intention for crypto providers to begin reporting transactions in 2026, with data submission deadlines set for 2027. These steps indicate a growing global effort to improve transparency in the cryptocurrency sector and prevent illicit financial activity.

Alexander Stefanov