Global: Australia Initiates Consultation on OECD Crypto Reporting Framework

Australia’s Treasury has begun seeking input from stakeholders on integrating the Crypto-Asset Reporting Framework (CARF) into its domestic tax legislation. This move aligns with global efforts to enhance tax transparency and address tax evasion in the cryptocurrency space.

Consultation on CARF Implementation

The consultation, launched on November 21, invites feedback on how to adopt the Organisation for Economic Co-operation and Development’s (OECD) CARF standards. Developed in 2022, CARF establishes rules for reporting cryptocurrency transactions and sharing this information among international tax authorities.

Australia’s Treasury is exploring two implementation approaches:

1. Direct adoption of CARF into Australian tax laws.
2. A tailored strategy designed to meet the specific needs of the Australian Taxation Office (ATO).

Advancing Tax Transparency

The OECD’s CARF is a global initiative designed to combat tax evasion through standardized reporting of crypto transactions. By 2023, 47 countries, including Australia, committed to adopting the framework, which mandates cryptocurrency exchanges and wallet providers to report crypto transactions to relevant tax authorities.

This reporting includes details such as digital asset purchases, providing greater visibility into cryptocurrency activity.

Australia’s Timeline for CARF Adoption

The consultation paper outlines a proposed timeline for CARF implementation:

• Reporting requirements would begin in 2026.
• The first exchange of information between the ATO and international tax authorities would occur in 2027.
  This timeline offers sufficient preparation time for crypto providers to update their reporting systems.

Global Adoption of CARF

Australia is not alone in adopting CARF. Other jurisdictions moving toward integration include:

• Canada: Announced in April 2023, with implementation targeted by 2026.
• Switzerland: Launched a public consultation in May 2023 to incorporate CARF into its tax laws.
• New Zealand: Proposed CARF adoption in August 2023, with reporting starting in April 2026 and submissions due by June 2027.