Australia, known for having the highest number of crypto ATMs worldwide, is turning to the Organization for Economic Co-operation and Development (OECD) for advice on shaping its cryptocurrency taxation policies.
Exploring Crypto Taxation Options
The Australian Department of Treasury has requested input from the OECD, aiming to align or adapt its taxation approach to digital assets. The OECD’s Crypto Asset Reporting Framework (CARF), designed to enhance tax transparency on crypto transactions, is a key consideration in the consultations. The OECD’s guidance is expected by January 2025.
CARF allows authorities to collect tax-related data from crypto service providers, such as exchanges, brokers, wallet providers, and ATM operators. It targets transactions above $50,000 and enables cross-border information sharing to combat tax evasion.
“The CARF improves visibility of income from crypto assets. This helps increase compliance with local tax laws and deters tax evasion,” an Australian government report highlighted.
Australia is weighing whether to adopt the CARF as-is or customize its approach by adding or removing specific information fields to better suit its domestic tax policies.
Australia’s Thriving Crypto Ecosystem
The request for OECD guidance reflects Australia’s awareness of its burgeoning crypto industry. Nearly 20% of Australians now hold cryptocurrency, with crypto-related profits averaging $9,627 per investor last year, a 17% increase from 2022, according to Swyftx.
Australia’s crypto ATM network also underscores the sector’s growth, accounting for 3.3% of the global market share. Major cities such as Sydney (441 ATMs), Melbourne (311), Brisbane (201), and Perth (140) host the majority of these machines.
Future Directions in Crypto and CBDCs
Australia’s government is not only focused on taxation but is also exploring other areas of the digital economy. The Reserve Bank of Australia recently sought feedback on the potential implementation of a central bank digital currency (CBDC), or “digital dollar,” and its impact on tokenized markets.
As Australia moves forward with consultations and policy development, its approach to crypto taxation will likely influence the broader regulatory landscape in the region. The collaboration with the OECD signals a commitment to balancing innovation with fiscal responsibility.
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