Australia, with the world’s most significant number of crypto ATMs, seeks advice from an international organization on implementing crypto taxation.
The Organization of Economic Cooperations and Development (OECD), which has invented taxation on digital assets framework, was asked by the Department of Treasury to share input by next January.
The input of the consultations has focused on comparing two options of crypto taxation: implementing the OECD’s Crypto Asset Reporting Framework (CARF) into their law or customizing the policy approach.
CARF is a taxation transparency framework for the international authorities to collect tax-related information from the providers, including crypto-asset purchases and specific consumer data for $50k above transactions. Tax authorities could also share the information with other authorities to gain related information.
“The CARF improves visibility of income from crypto assets. This helps increase compliance with local tax laws and deter tax evasion,” the government on report.
The consultations seek advice on whether the government should follow the same rules as the OECD or implement its own to target specific data needed. If the Australian government implements its own, it could add or remove particular information fields based on the tax authority.
CARF would apply the Reporting Crypto Asset Providers to several crypto companies, including crypto exchanges, wallet providers, brokers, dealers, and ATM providers.
Australia’s growing crypto industry
The Australian government is aware that the crypto industry is growing. This is reflected in the relatively high crypto adoption among their people, with one-fifth of their population identified as crypto holders.
Australian crypto holders last year also gained a profit of up to $9,627 on average, or an increase of 17% from 2022 profit, according to a Swyftx report. The number of people going to invest in crypto in the next year is projected to boost to more than 2 million people.
According to CoinATMRadar, the crypto automatic teller machines (ATM) in Australia also share a big amount, estimated at around 3,3% of the market share in the world. The ATM has spread into Australia’s top cities, including Sydney (441), Melbourne (311), Brisbane (201), and Perth (140).
The government has recently sought advice regarding the central bank digital currency or digital dollar.
