Australia drafts CARF law for crypto reporting

TLDR

Australia has published draft legislation to embed the OECD Crypto-Asset Reporting Framework (CARF) in law and create domestic crypto tax reporting rules for digital assets.

1. The Treasury Laws Amendment Bill 2026 would implement CARF and a homegrown crypto reporting regime, enabling automatic exchange of tax data from 2028.
2. Crypto exchanges and platforms serving Australian residents would need to collect detailed customer and transaction data and report it to tax authorities and partner countries.
3. The bill is still a proposal, with public consultation open and phased obligations expected from mid 2027, so key details and timelines can still change.

Deep Dive

1. Draft CARF Legislation

Australias Treasury has released the Treasury Laws Amendment Bill 2026: Tax information reporting, a draft law to implement the OECD Crypto-Asset Reporting Framework in domestic legislation and introduce a local crypto reporting regime, according to recent coverage of the bill.

CARF is a global crypto tax transparency standard developed by the OECD to combat cross border tax evasion, with 77 jurisdictions committed and first exchanges of crypto tax data planned between 2027 and 2029, as summarized in OECD implementation reports.

The Australian draft is open for submissions until 28 October 2026 and would let authorities automatically exchange crypto tax information with other CARF participants starting in 2028, while also updating existing financial account reporting rules.

2. Obligations For Platforms

Under the proposal, in scope crypto asset service providers such as exchanges and certain intermediaries would have to identify relevant users, track crypto to fiat, crypto to crypto, and some transfer transactions, and report those to the Australian Taxation Office, which can then share data annually with other tax authorities. The framework is described in detail in the draft framework description.

Importantly, the bill does not itself set new tax rates on Bitcoin, Ethereum or other cryptocurrencies; instead it creates reporting rules to enforce existing tax laws more effectively. Separate reporting requirements for platforms dealing with Australian residents are expected to begin around July 2027, according to the platform reporting start date.

3. Timeline And Next Steps

The legislation is still in draft form, so it is not yet law. Treasury will review feedback, potentially amend the bill, and the government would then need to introduce and pass it through Parliament before obligations take effect.

International data exchange is targeted for 2028, giving platforms and users a transition window. In parallel, Australias securities regulator is consulting on separate licensing and prudential rules for crypto trading and custody platforms, expected to roll out around 2027, which will sit alongside the tax reporting regime.

Crypto businesses should watch for the final text of the CARF implementation, detailed definitions of who is in scope, and any thresholds or exemptions that could affect smaller or niche providers.

Conclusion

Australias move toward CARF implementation signals a clear shift to treating crypto tax reporting like traditional financial accounts, with automated cross border data sharing rather than ad hoc enforcement.

For crypto users and platforms, the headline impact is not new taxes but fewer places to hide activity, tighter compliance expectations, and a multi year regulatory build out that will shape how Australian linked crypto services operate from 2027 and beyond.