Australia, known for having the highest number of crypto ATMs in the world, is looking to implement crypto taxation and seeking advice from an international organization on the matter. The Department of Treasury has reached out to the Organization for Economic Cooperation and Development (OECD) for input on implementing crypto taxation by January of next year.
The consultations with the OECD have focused on two main options for crypto taxation in Australia. The first option is to adopt the OECD’s Crypto Asset Reporting Framework (CARF) into Australian law. This framework aims to enhance transparency in taxation by allowing international authorities to collect tax-related information from crypto asset providers, including details of transactions above $50k. This information can also be shared among tax authorities to improve compliance and combat tax evasion.
The second option being considered is for Australia to customize its own approach to crypto taxation. This would allow the government to tailor the regulations to specific data needs and requirements of the tax authority. The decision to follow the OECD’s rules or create a customized approach will depend on the advice provided during the consultations.
If CARF is implemented, it will apply to a range of crypto companies in Australia, including exchanges, wallet providers, brokers, dealers, and ATM providers. This move is seen as crucial in ensuring that income from crypto assets is properly accounted for, increasing compliance with local tax laws.
Australia’s crypto industry is rapidly growing, with a significant portion of the population identified as crypto holders. A recent report from Swyftx revealed that Australian crypto holders made an average profit of $9,627 last year, marking a 17% increase from the previous year. The number of people looking to invest in crypto is expected to surpass 2 million in the coming year.
In addition to the growing number of crypto holders, Australia also boasts a substantial market share of crypto ATMs, estimated at around 3.3% globally. These ATMs are spread across major cities like Sydney, Melbourne, Brisbane, and Perth, making it easier for Australians to buy and sell cryptocurrencies.
The Australian government has also shown interest in exploring the possibility of a central bank digital currency or digital dollar. This further demonstrates the country’s commitment to embracing the digital asset revolution and ensuring that the regulatory framework is in place to support its growth.