Government looks to improve crypto tax transparency
The government has rolled out a consultation paper on Australia’s implementation of the OECD-developed Crypto Asset Reporting Framework.
The Albanese government announced it had released a consultation paper focused on enhancing tax transparency for crypto transactions and associated amendments to the Common Reporting Standard.
The Crypto Asset Reporting Framework was a new transparency framework that responded to the rapid growth of crypto asset markets globally, according to the government.
It was also noted the framework responded to the challenges the growth of crypto presented for addressing tax evasion and tax avoidance.
The government said the paper would aim to improve tax visibility in crypto.
“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,” the government said.
“It works by compelling crypto related transactions to the Australian Tax Office.”
The framework would allow the ATO to share this data with global counterparts who had also implemented the OECD CARF model.
The ATO would also receive the same information related to Australian residents, which would make it harder for individuals and entities to hide their crypto asset income from revenue authorities.
The government said the motivation behind implementing the reporting framework was to maintain Australia’s commitment to international tax transparency.
“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,” the government said.
“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.”
Australia was one of the 50 countries that had signalled their intention to implement the framework.
The government noted the effectiveness of international information-sharing frameworks depended on their widespread adoption.
Submissions can be made to the consultation paper until 24 January 2025.
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