Australia's Treasury has released a consultation paper seeking input on the implementation of the Organisation for Economic Co-operation and Development's (OECD) Crypto Asset Reporting Framework (CARF) in its tax laws. The CARF provides standardized rules for collecting tax information on crypto-asset transactions and facilitates information exchange between tax authorities. The consultation paper outlines two possible approaches: adopting CARF directly into Australian tax law or tailoring it to meet the needs of the Australian Taxation Office. The CARF mandates that crypto exchanges and wallet providers report specific transactions to tax authorities, with reporting requirements expected to commence in 2026. This initiative is part of Australia's commitment to align with international standards, following a pledge made in 2023 alongside 47 other countries. The aim is to improve tax transparency and oversight within the crypto sector, ensuring that information exchanges with other countries can start by 2027. Similar initiatives are underway in Canada, Switzerland, and New Zealand, indicating a broader move towards international compliance of crypto asset reporting.

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