The consultation, launched on Nov. 21, invites input on two potential approaches: directly integrating the OECD’s CARF into Australia’s tax laws or tailoring the framework to better align with the Australian Taxation Office’s (ATO) specific needs.

What Is CARF?

Introduced by the OECD in 2022, CARF establishes standardized rules for collecting and sharing tax data on cryptocurrency transactions across jurisdictions. It’s part of a broader international push to address tax evasion facilitated by digital assets.

In 2023, 47 nations, including Australia, committed to adopting CARF, signaling a global effort to increase transparency in crypto markets. The framework requires crypto exchanges and wallet providers to report key transactional data—such as digital asset purchases—to relevant tax authorities.

Australia’s Proposed Timeline

Australia aims to integrate CARF into its domestic tax laws by 2026. According to the consultation paper, this timeline allows sufficient preparation for crypto providers to update their systems, ensuring the ATO can exchange data with international tax authorities by 2027.

“Subject to a final government decision, it is envisaged that CARF reporting requirements would commence from 2026,” the Treasury noted, emphasizing that the rollout aligns with future legislative priorities.

Global CARF Implementation Efforts

Australia’s move reflects a broader trend among countries embracing CARF to enhance crypto-related tax compliance:

Canada: Announced its intention to implement CARF by 2026. Switzerland: Launched a public consultation in May 2023, targeting enhanced crypto tax transparency. New Zealand: Proposed CARF adoption in August 2023, with crypto providers required to start collecting data in April 2026 and report it by mid-2027.

The adoption of CARF underscores the increasing focus on regulating cryptocurrency markets to ensure they don’t become a haven for tax evasion. As Australia moves closer to implementing these global standards, crypto providers and users will likely face new compliance requirements, reshaping the regulatory landscape for digital assets.