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Australia Seeks Public Input on Crypto Reporting Framework

Australia’s Treasury Department has launched a public consultation to investigate the incorporation of the Organization for Economic Cooperation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF) into domestic tax legislation. The framework attempts to standardize the global gathering and exchange of tax-related data on bitcoin transactions, thereby increasing transparency and compliance.

The consultation paper proposes two options for incorporating CARF into Australian law: fully adopting the OECD framework or adapting it to meet the specific needs of the Australian Taxation Office (ATO). We request feedback from stakeholders on the strategy that would most effectively meet domestic requirements while maintaining consistency with international norms.

The OECD developed CARF in 2022 to tackle global tax evasion via cryptocurrency. The framework requires cryptocurrency exchanges and wallet providers to report transaction data, including digital asset purchases, to the appropriate tax authorities. Over 47 nations, including Australia, have committed to implementing the guidelines as part of a global push to improve tax compliance in the cryptocurrency sector.

According to the Treasury, CARF reporting requirements are likely to go into effect in 2026, allowing the ATO to exchange information with international tax authorities by 2027. The purpose of this schedule is to give cryptocurrency suppliers ample time to modify their systems to meet the new reporting requirements.

Australia’s action comes as other countries, like Canada, Switzerland, and New Zealand, are incorporating CARF into their tax legislation. Feedback from the consultation process will assist in shaping Australia’s eventual decision to apply the framework, ensuring that it meets local regulatory objectives while also promoting global tax transparency initiatives.

We encourage stakeholders, including industry experts and cryptocurrency service providers, to participate in the consultation until January 2025. This work demonstrates Australia’s commitment to meeting international standards while addressing the unique problems of the fast-changing cryptocurrency market.

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