Australia Considers Adopting OECD Crypto Reporting Framework

Australia has released a consultation paper to gather feedback on the application of international reporting standards for Cryptoassets. The Australian Treasury has commenced a consultation on November 21 on how it will implement the Cryptoasset Reporting Framework (CARF) of the Organisation for Economic Co-operation and Development (OECD), a set of standard rules to collect tax information on Cryptoasset transactions and exchange information between tax authorities. The paper proposes two different options to implement CARF. This includes applying the framework into Australian tax law or taking a more flexible approach to meet the needs of the Australian Taxation Office.

Applying International Standards for Crypto Reporting

In 2022, the OECD, an intergovernmental organization that creates international standards, developed and released CARF to combat global tax evasion using Cryptoassets. The framework provides tax authorities with better oversight over users and Cryptoasset transactions. In 2023, 47 countries have committed to implementing CARF into their legal systems, accepting an international standard for information exchange. The countries have agreed to implement information exchange agreements to start in 2027. Australia is one of the countries that has committed to implementing the new Cryptoasset reporting framework. Therefore, the country is moving towards integrating CARF into its tax laws by consulting with stakeholders. The OECD's CARF will require Cryptoasset exchanges and wallet providers to report specific Cryptoasset transactions to the relevant tax authorities. The information collected will include purchases of digital assets. According to the consultation paper, the CARF reporting requirements may start in 2026. The Treasury wrote:

"Depending on the final Government decision, the CARF reporting requirements are expected to commence from 2026, to ensure that the first exchanges of information between the ATO and other tax authorities can occur in 2027. This timeline will also be subject to future legislative priorities."

The Treasury also stated that this timeline will provide sufficient preparation time for Cryptoasset reporting service providers to update their systems.

Other Countries Implementing CARF into Tax Laws

Besides Australia, other jurisdictions have also started integrating CARF into their laws. On April 18, Canada announced it will apply the framework before 2026. On May 18, Switzerland released a public consultation to apply the standards into local tax laws. The country also intends to implement the framework to enhance tax transparency for Cryptoassets. Meanwhile, New Zealand has introduced the framework in a new tax bill. On August 27, the New Zealand Revenue Minister presented a proposal to implement the framework into its laws. Cryptoasset service providers are expected to collect the information starting from April 1, 2026 and submit them before June 30, 2027.

Compiled by Bitcoin News