- The Australian Treasury releases a consultation paper on the adoption of the CARF.
- The CARF, developed by the OECD, enables authorities to collect and share crypto tax-related information.
- The department invites public feedback on the proposal, with the consultation closing on January 24, 2025.
The Australian Treasury has released a consultation paper addressing plans to enhance tax transparency by adopting the Crypto Asset Reporting Framework (CARF). Developed by the Organization for Economic Cooperation and Development (OECD), the CARF enables governments to collect and exchange tax-related information on crypto transactions.
Published on November 21, the consultation paper evaluates the feasibility of implementing the OECD’s model into Australian tax law. It explores the potential challenges, benefits, and adjustments needed to align the policy with domestic laws. The document also proposes a timeline for introducing CARF to reduce compliance costs for the crypto community and includes updates to the common reporting standard (CRS).
Australia’s Strategic Move to Tackle Crypto Tax Evasion
Australia’s strategic move comes at a time when the crypto industry’s rapid growth has created tax challenges. While tax evasion problems remain a global issue, the OECD developed the CARF, which is aimed at enhancing international tax transparency. The proposal mandates crypto intermediaries such as exchanges and wallet providers to report details on specific crypto transactions to tax authorities. This standardized reporting will enable countries to better monitor and tax crypto-related activities, reducing opportunities for tax evasion and avoidance.
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The Treasury is seeking public input on the CARF implementation. The consultation is open until January 24, 2025, and submissions, unless requested otherwise, will be made public on the Treasury website.
Australia has positioned itself as a crypto-friendly country, with over four million citizens investing in digital assets. The increasing number of Bitcoin ATMs—more than 1,200 installed nationwide—reflects the country’s growing interest in cryptocurrencies.
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