Australia asks OECD for advice on crypto taxation
Date: 2024-11-25 Author: Gabriel Deangelo Categories: IN WORLD
Australia, which has the largest number of crypto ATMs in the world, is exploring how best to tax digital assets. The Treasury Department has asked the OECD, which developed the Digital Asset Tax Framework (CARF), to provide advice by January next year.
The discussions are focused on two approaches: directly implementing CARF into Australian law or adapting existing policies to suit national needs.
CARF is an international tax transparency framework that allows tax data to be collected through cryptocurrency service providers. The system covers cryptocurrency transactions, including asset purchases and information on users who have made transactions worth more than $50,000. This information can be shared between tax authorities in different countries to improve control.
“CARF improves the transparency of crypto asset revenues, which facilitates local tax compliance and prevents tax evasion,” the government said in a report.
The Australian government plans to decide whether to fully adhere to OECD standards or develop its own approach focused on collecting specific data. If the country chooses the latter, it will be able to change the list of mandatory data depending on the needs of tax authorities.
CARF assumes mandatory participation of crypto service providers such as exchanges, wallets, brokers, dealers and ATMs.
The Australian government recognizes the rapid development of the crypto industry. According to Swyftx, about 20% of the country's population owns cryptocurrency, and the average profit of Australian investors last year was $9,627, which is 17% more than in 2022. The number of new investors in 2025 could exceed 2 million people.
Australia also has a significant share of the global crypto ATM market, according to CoinATMRadar, at 3.3%. Major cities in the country, such as Sydney, Melbourne, Brisbane, and Perth, already have hundreds of such machines.
In addition to taxation, the government recently asked for recommendations on the possible launch of a central bank digital currency, a so-called “digital dollar.”
