Australia has released draft legislation aimed at improving tax reporting for cryptocurrency transactions and increasing cooperation between countries.
The proposed law would allow the automatic exchange of crypto-related tax information between participating countries, helping tax authorities identify possible tax evasion and improve transparency in the growing digital asset market.
The draft bill, Treasury Laws Amendment Bill 2026: Tax information reporting, is now open for public comment until October 28.
According to the Australian Treasury, the bill would establish a legal framework for adopting the Organization for Economic Co-operation and Development (OECD) Crypto-Asset Reporting Framework (CARF) into Australian law.
The proposal also includes a domestic crypto reporting system. This means Australia intends to strengthen its own collection of cryptocurrency tax information while preparing to share relevant information internationally.
The move reflects growing efforts by governments around the world to bring cryptocurrency activities under existing tax reporting systems and make it harder for individuals to hide taxable income through digital assets.
How the OECD Crypto-Asset Reporting Framework Works
The OECD introduced CARF to help countries address tax risks linked to the increasing use of cryptocurrencies and other crypto assets. The framework was approved in August 2022 as governments sought better ways to monitor digital asset transactions and prevent tax evasion.
Under the framework, participating jurisdictions can automatically exchange relevant information about crypto-related transactions with one another.
This cooperation is intended to help tax authorities gain a clearer picture of taxpayers’ crypto activities, including transactions that may involve overseas platforms or accounts.
For Australia, adopting CARF would create a formal system for collecting and reporting the required information in line with international standards.
The proposed domestic reporting regime would complement these international arrangements by improving the reporting of crypto-related information within the country.
The legislation is still in the draft stage, so the final requirements will depend on the legislative process and any changes made following public feedback.
Individuals and businesses affected by the proposed rules can review the draft and submit their comments before the consultation period closes.
International Crypto Tax Information Sharing Expected in 2028
Australia’s plan to introduce CARF has been developing over several years. The country first announced its intention to implement the framework in November 2023 and consulted on its proposed approach in late 2024.
The government later confirmed plans to introduce both CARF and a domestic crypto reporting regime in its 2025–26 Mid-Year Economic and Fiscal Outlook.
International exchanges of crypto tax information are expected to begin in 2028. This timeline would give Australia time to establish the legal and administrative systems needed to support the new reporting arrangements.
The proposed changes could increase scrutiny of cryptocurrency transactions and make international tax cooperation more effective.
Crypto users, investors and businesses operating in Australia should follow developments closely as the draft legislation moves through the consultation and lawmaking process.
For now, the October 28 deadline offers stakeholders an opportunity to comment on the proposed rules before Australia finalizes its approach to crypto tax reporting.
