Australia has released draft legislation to introduce international crypto tax reporting standards, with public consultation running until October 28, 2026, and the first cross-border exchanges of taxpayer information planned for 2028.
Summary
- Australia released draft crypto tax reporting legislation on October 15, seeking public feedback until October 28.
- The proposal would require domestic crypto transaction reporting and support international exchanges of taxpayer information annually.
- Australia’s first international exchanges of crypto tax information under the framework are currently planned for 2028.
- The OECD reports 77 jurisdictions have committed to implementing its Crypto Asset Reporting Framework by 2029.
- Australia’s legislation would update existing financial account reporting standards alongside introducing new requirements for crypto transactions.
The Australian Treasury confirmed on October 15 that the proposed legislation would introduce the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF) into domestic law. The proposal covers reporting on crypto transactions involving Australian residents and changes to existing financial account reporting standards.
Published as part of the government’s tax transparency program, the exposure draft follows commitments made in the 2025–26 Mid-Year Economic and Fiscal Outlook. Treasury has provided an explanatory memorandum alongside the proposed legislation and is accepting written submissions through its consultation portal.
The bill remains a proposal and has not yet become law. Treasury will consider feedback before the government decides whether to make changes and introduce the legislation into Parliament.
Australia crypto tax reporting rules would cover local transactions
The proposed framework would establish reporting arrangements for crypto transactions involving Australian residents, allowing information to reach the Australian Taxation Office (ATO) through domestic reporting requirements. Treasury has proposed these rules alongside international reporting obligations intended to support exchanges of taxpayer information between participating countries.
Under the OECD’s CARF standard, covered crypto service providers must collect information about qualifying users and transactions. The framework includes customer identification requirements and reporting on relevant crypto transfers and exchanges, with national legislation determining how businesses submit information to their respective tax authorities.
Information required under the international standard includes identifying details of reportable users and transaction data for covered crypto assets. The OECD’s reporting model covers exchanges between crypto assets and traditional currencies, exchanges between different crypto assets, and certain transfers involving crypto assets.
The rules are designed for reporting intermediaries that carry out relevant crypto services, including exchanges and other businesses facilitating covered transactions. Their precise domestic obligations will depend on the legislation ultimately passed by Australia’s Parliament and the reporting requirements adopted by the tax authorities.
For Australian residents, the proposed domestic regime would give the ATO an additional source of transaction records. The Treasury consultation does not announce a new tax rate on Bitcoin, Ethereum, or other cryptocurrencies. Its stated purpose is to establish reporting arrangements and improve access to information used in administering existing tax laws.
OECD crypto reporting framework targets cross-border tax evasion
Developed with G20 countries, CARF provides a standard process for exchanging information about crypto transactions between national tax authorities. The OECD created the framework after identifying difficulties in obtaining information about digital assets held or traded through foreign service providers.
The organization explained that CARF requires participating jurisdictions to establish domestic reporting laws, activate international exchange agreements, and use an agreed electronic format for transmitting information. Participating authorities can then exchange relevant information annually with the jurisdictions where reportable users are tax residents.
Through the arrangement, a tax authority may receive qualifying transaction information reported by a service provider operating in another participating jurisdiction. The exchange process operates through international agreements and applies to information covered by the framework, subject to the relevant domestic and international requirements.
The OECD said in September 2026 that 77 jurisdictions had committed to implementing CARF, with first exchanges scheduled for 2027, 2028, or 2029 depending on the jurisdiction. The group includes countries with established cryptocurrency markets, including Australia, the United Kingdom, Japan, and the United States.
According to the OECD, the framework addresses risks associated with taxpayers holding crypto assets abroad without properly reporting their income or wealth. Its Global Forum on Transparency and Exchange of Information for Tax Purposes oversees implementation and assesses whether participating jurisdictions have appropriate confidentiality and data protection safeguards.
Australia began preparing crypto tax changes in 2023
Australia’s current proposal follows several years of work on international tax reporting arrangements. In November 2023, the government joined other jurisdictions in committing to the OECD-developed framework and expressed support for introducing the necessary domestic legislation.
The Australian Treasury published a joint statement on November 10, 2023, outlining that commitment. The participating governments said they intended to improve their ability to monitor cross-border crypto activity and address tax evasion using standardized reporting arrangements.
The statement called for the “widespread, consistent and timely implementation” of CARF, with the original group working toward international information exchanges beginning in 2027, subject to legislative procedures in each jurisdiction.
Australia subsequently opened a consultation on the framework in November 2024, examining how the country should introduce the reporting standard and amend its existing Common Reporting Standard. The consultation closed in January 2025, after Treasury invited submissions on the government’s proposed approach.
The latest draft follows the government’s later decision to pursue both the international CARF requirements and a domestic reporting regime. Australia’s planned first international exchanges have since been set for 2028, a year after the earliest participating jurisdictions are scheduled to begin sharing information.
Alongside the tax reporting proposal, Australia is developing separate rules for companies offering digital asset trading and custody services. The Australian Securities and Investments Commission recently opened consultation on new cryptocurrency exchange and custody requirements, with industry feedback due November 27.
The regulator’s proposed licensing standards address financial resources, customer asset protection, and trading practices. Those requirements form part of Australia’s digital asset financial services framework, which has a separate implementation schedule from the Treasury’s tax reporting proposal.
Treasury seeks feedback before planned 2028 data exchanges
The government’s October consultation covers the draft legislation and supporting explanatory material. Interested parties have until October 28, 2026, to submit responses through Treasury’s official consultation website.
Beyond introducing CARF, the draft would update Australia’s Common Reporting Standard, which governs the automatic exchange of certain financial account information between tax authorities. The amendments form part of international changes intended to account for developments in financial products and reporting practices.
The OECD released technical reporting formats for CARF and the amended Common Reporting Standard in October 2024. Those specifications describe how tax authorities can electronically exchange the required information and may be used for domestic reporting where national law permits.
A further technical update followed in July 2025, when the organization published revised guidance for the CARF data exchange format. The updated documentation provides specifications for preparing and transmitting information between participating tax administrations.
For the current Australian consultation, Treasury has made the exposure draft and explanatory material available in PDF and Word formats. Submissions must be lodged through the consultation portal, which includes instructions on acceptable documents and privacy requirements.
Treasury has identified its MNE Tax Transparency team as the contact point for questions about the proposal, with inquiries directed to [email protected].
