The Treasury released the proposed legislation on October 15, opening public consultation until October 28. The measures would introduce the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework into Australian law and establish domestic reporting requirements for digital asset transactions.
The proposals remain subject to consultation and legislative approval. They have not yet been enacted, meaning the reporting obligations are not currently enforceable under the proposed framework.
The initiative would give the Australian Taxation Office greater visibility over cryptocurrency transactions, including activity conducted through overseas service providers. Participating tax authorities would exchange standardised information to identify income and gains that taxpayers might otherwise fail to disclose.
Treasury said the legislation would also update Australia’s existing Common Reporting Standard, which governs automatic exchanges of financial account information between participating jurisdictions. The changes are intended to address gaps created by digital assets operating outside conventional banking arrangements.
The proposed framework targets crypto asset service providers facilitating transactions for customers. Such businesses would face requirements to collect relevant customer information, identify reportable transactions and submit prescribed details to tax authorities.
International information sharing represents a central element of the initiative. Authorities would be able to receive information about qualifying cryptocurrency activity involving their tax residents through arrangements established with other participating jurisdictions.
The OECD developed the framework to address limitations in international tax reporting systems, particularly where cryptocurrency holdings and transactions are not captured through traditional financial institutions.
Unlike conventional bank accounts, digital assets can move between platforms and jurisdictions without necessarily generating information accessible to the taxpayer’s home authorities. Standardised reporting is designed to reduce those information gaps.
Australia previously examined alternative approaches, including directly incorporating the OECD framework into domestic legislation or developing a customised reporting regime. Treasury conducted an earlier consultation between November 2024 and January 2025 before advancing the legislative proposals.
The latest consultation follows a commitment announced through the government’s 2025–26 Mid-Year Economic and Fiscal Outlook. Treasury has released both exposure draft legislation and explanatory material for examination by affected businesses and other interested parties.
The July 2027 commencement timetable would require affected platforms to prepare systems capable of collecting, maintaining and transmitting prescribed information. Implementation details, including the final scope of reporting obligations, remain dependent on the legislative process.
For cryptocurrency exchanges, compliance could involve changes to customer identification procedures, transaction records and information technology systems. Businesses operating across multiple jurisdictions would also need to consider reporting requirements applicable in each participating market.
The proposals concern tax transparency rather than the creation of a new cryptocurrency tax. Australia’s existing taxation rules continue to determine whether particular digital asset transactions produce assessable income or capital gains.
The distinction matters because reporting obligations apply to information collection and disclosure, while the underlying tax consequences depend on the circumstances of individual transactions and applicable legislation.
The framework could improve authorities’ ability to compare taxpayers’ declarations against transaction information received from service providers. Discrepancies could subsequently be examined through existing compliance processes.
The international component depends on cooperation between participating jurisdictions and the legal arrangements governing automatic information exchange. Domestic legislation alone does not guarantee that every overseas cryptocurrency transaction will become visible to Australian authorities.
Australia’s initiative forms part of a broader international effort to improve tax compliance involving digital assets. Participating governments have committed to implementing compatible reporting arrangements, although national commencement dates and administrative requirements may differ.
The proposals also arrive as Australia implements separate regulatory changes affecting digital asset businesses. Those measures include financial services regulation and expanded anti-money laundering obligations, which operate independently of the proposed tax reporting framework.
Australia’s financial intelligence agency, AUSTRAC, introduced expanded reporting and registration requirements for virtual asset service providers during 2026. Those obligations address financial crime risks rather than the automatic international exchange of tax information.
The Australian Securities and Investments Commission separately opened consultation on October 15 concerning standards and guidance for digital asset platforms and tokenised custody providers under legislation enacted earlier this year.
That consultation addresses asset holding, transaction settlement and financial requirements for platform operators, distinguishing consumer protection obligations from the Treasury’s proposed taxation measures.
Treasury’s consultation invites submissions on the exposure draft and accompanying explanatory material. Responses must be lodged by October 28, providing stakeholders an opportunity to examine the proposed legal provisions before the government determines their final form.
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