Australia seeking advice on crypto taxation to OECD

Australia, which has the world’s largest number of crypto ATMs, is seeking advice from an international body on the implementation of crypto taxation.

The Organization for Economic Co-operation and Development (OECD), which invented the taxation framework for digital assets, has been asked by the Treasury Department to share input by next January.

Input to the consultations focused on comparing two options for crypto taxation: implementing the OECD’s CryptoAsset Reporting Framework (CARF) into its own laws or customizing the policy approach.

CARF is a tax transparency framework for international authorities to collect tax-related information from providers, including certain consumer data for crypto asset purchases and transactions over $50,000. Tax authorities may also share information with other authorities to obtain relevant information.

“CARF increases the visibility of income from crypto assets. “This helps increase compliance with local tax laws and deter tax evasion,” he said.

The consultations are seeking advice on whether the government should follow the same rules as the OECD or apply its own rules to target the specific data needed. If the Australian government implements its own, it may add or remove certain fields of information, depending on the tax authority.

CARF will apply Reporting Crypto Asset Providers to a variety of crypto companies, including crypto exchanges, wallet providers, brokers, dealers and ATM providers.

Australia’s growing crypto industry

The Australian government knows that the crypto industry is growing. This is also reflected in the relatively high rate of crypto adoption among their people, with one-fifth of their population identifying as crypto holders.

According to the Swyftx report, Australian crypto holders made an average profit of up to $9,627 last year; This means a 17% increase compared to 2022 profit. The number of people investing in crypto next year is expected to exceed 2 million.

Crypto automated teller machines (ATMs) in Australia also share a large share, estimated at around 3.3% of the global market share, according to CoinATMRadar. ATM has expanded to Australia’s top cities, including Sydney (441), Melbourne (311), Brisbane (201) and Perth (140).

The government recently sought advice on a central bank digital currency or digital dollar.