Crypto taxation framework under review in Australia

With nearly 20% of Australians owning digital assets, the decision is crucial for regulating its significant crypto market and enhancing tax revenue.
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Australia is seeking advice from the Organisation for Economic Co-operation and Development (OECD) to shape its approach to taxing digital assets. The Treasury has asked the OECD for input by January, comparing two potential frameworks: adopting the OECD’s Crypto Asset Reporting Framework (CARF) or customising its own policy to suit local requirements.

CARF is an international standard designed to increase transparency by requiring crypto providers, such as exchanges and wallet services, to report tax-related data. It includes tracking high-value transactions exceeding $50,000 and sharing data between global tax authorities to combat evasion. The Australian government aims to assess whether a standardised or tailored system would best serve its growing crypto market.

Australia boasts one of the largest crypto ATM networks globally, reflecting its high adoption rates, with nearly 20% of the population owning digital assets. The average crypto profit per user rose 17% last year to $9,627, and the number of investors is expected to increase by over two million. Alongside this, the government is also considering policies for a potential digital pound.