Australia moves to adopt international crypto tax reporting standards, harmonizing with CARF framework to enhance transparency and tax compliance.
Australia is moving forward with a consultation process to gather input on adopting an international standard for reporting crypto assets. This initiative, launched by the Department of the Treasury on November 21, centres around the Organization for Economic Co-operation and Development’s (OECD) Crypto Asset Reporting Framework (CARF). The aim is to harmonize tax information collection. In addition, this will enhance international exchange of information in tax matters among the member jurisdictions.
To this end, Australia has commenced a consultation process. The paper provides two possibilities of implementing the OECD’s Crypto Asset Reporting Framework (CARF) into the Australian tax legislation. The first strategy is a direct application of the OECD framework and the second a more adapted strategy for the ATO.
CARF was developed by the OECD in 2022. It has the purpose of fighting against international tax avoidance connected with crypto assets. It improves the capacity of the tax authorities to monitor more easily the transactions and users in the cryptocurrency. Moreover, CARF was agreed to be implemented by 47 countries in 2023 with the intention to exchange tax information by 2027.
Australia Sets Timeline for Crypto Reporting Under CARF, Starting in 2026
In the process, exchanges and wallet providers dealing with crypto companies based in Australia will be subjected to reporting some transactions, such as digital asset purchases, to the tax authorities. According to the consultation paper, the CARF reporting could start in 2026, and the first flow of information could be in 2027. Such a timeline helps crypto providers prepare for the changes in reporting requirements.
Besides Australia, New Zealand is also a country striving to enhance the transparency of crypto assets. In August 26,2024 the Minister of Revenue Simon Watts called for changes in the country’s laws on taxation. These changes are contained in the “Taxation Annual Rates for 2024-25, Emergency Response, and Remedial Measures” Bill, and include adopting CARF and amending the Common Reporting Standard. The bill is expected to come into force on the first day of April 2026. By then, crypto providers must gather the necessary data, and the submission deadline is June 30, 2027.
Other countries are also in the process of adopting CARF. Canada has proposed adopting the framework by 2026. Similarly, in Switzerland, a consultation process on tax laws to harmonize with CARF standards was initiated in May. Both countries want to enhance the transparency and compliance of crypto operations.
As global cooperation on crypto reporting grows, countries like Australia, New Zealand, and others are preparing for major changes. Ultimately, these efforts will reshape how digital asset transactions are regulated and reported.
