The Government has released a consultation paper on Australia's implementation of the OECD‑developed Crypto Asset Reporting Framework and associated amendments to the Common Reporting Standard.
The Crypto Asset Reporting Framework is a new transparency framework responding to the rapid growth of crypto asset markets globally and the challenges this presents for addressing tax evasion and tax avoidance.
The new reporting framework will improve visibility over incomes made through crypto assets to increase compliance with local tax laws via automatic exchange of information between revenue authorities. It works by compelling crypto asset intermediaries operating in Australia to report data on crypto related transactions to the Australian Taxation Office.
The ATO can then share this data with their global counterparts who have also implemented the OECD CARF model. The ATO will also receive the same information, as it relates to Australian residents. This serves to make it harder for individuals and entities to hide their crypto asset income from revenue authorities.
The Crypto Asset Reporting Framework builds on existing international frameworks such as the Common Reporting Standard that enable tax authorities to exchange information on traditional financial transactions.
Implementing this reporting framework would maintain Australia's commitment to international tax transparency.
Over 50 countries have signalled their intention to implement the Crypto Asset Reporting Framework. The effectiveness of international information sharing frameworks depends on their widespread adoption.
Enhanced tax reporting aligns with the Government's multinational tax integrity and transparency agenda and Australia's longstanding support for international exchange of information regimes.
Submissions can be made to the consultation paper until 24 January 2025.
