Australia’s Treasury has this month published draft legislation that would bring automatic crypto tax reporting into domestic law and create a parallel local reporting regime for virtual asset service providers. The exposure draft, released on October 15, 2026, is open for public comment through October 28, 2026, the government confirmed, making today the final day for industry and stakeholders to submit feedback. The draft bill would implement the Organisation for Economic Co operation and Development Crypto Asset Reporting Framework, often called CARF, by adding a new schedule to Australia’s tax information reporting laws. In practice that would give Australian authorities the legal power to collect standardised tax relevant data from crypto platforms and to exchange that information automatically with partner tax administrations under international information sharing arrangements. Why the change matters For Australian tax authorities, CARF is designed to reduce scope for undeclared gains by residents who use overseas or offshore crypto platforms. Under the draft measures the government would also create a domestic reporting regime that would require registered virtual asset service providers to report specified transactions involving Australian tax residents to the Australian Taxation Office. The measures are intended to align Australia’s rules with international standards and to speed the flow of taxpayer information across borders. The government has signalled a two stage timetable in commentary accompanying the draft. Domestic reporting obligations could take effect in 2027, while the first cross border exchanges of CARF data involving Australia are planned to start in 2028 once notice and technical arrangements with other jurisdictions are finalised. That timing tracks earlier OECD planning and the government’s own commitments to implement CARF and related updates to the Common Reporting Standard. What the draft requires and who is affected The exposure draft is intentionally flexible about the categories of entities that may be obliged to report. Rather than hard coding a closed list of reporters in primary law, the bill would give the government powers to specify, by instrument or regulation, which types of crypto platforms, custodians, wallet providers or intermediaries must collect and submit information. That approach mirrors other recent international reporting rules, and is intended to allow the regime to adapt as market structures change. Affected firms could face new compliance tasks including collecting tax residency details and verified customer identifiers, recording specified transaction types, and preparing periodic returns in a standard electronic format for submission to the ATO. The draft also updates Australia’s Common Reporting Standard rules to reflect both tokenised money and covered crypto asset types identified by the OECD. Industry reaction and practical implications Tax advisers and major accounting firms have already begun publishing guidance to clients, warning that the compressed consultation window gives businesses limited time to assess operational impacts. Firms that facilitate cross border transfers, custody, swaps or marketplace trading will have to map existing data collection to new reporting templates, and build systems to capture the additional identifiers CARF requires. Smaller or offshore platforms that have historically relied on limited customer identification or less formal record keeping will face a more difficult compliance uplift. The exposure draft leaves many technical details to regulations or later guidance, increasing the practical importance of the consultation, because those secondary instruments will determine which transactions and which entities are captured, and how the rules are enforced. Policy trade offs and privacy questions The government frames the reform as closing loopholes and ensuring tax equity between crypto users and holders of traditional financial assets. That will likely appeal to policymakers concerned about revenue leakage. At the same time privacy advocates and some market participants will press on scope and safeguards. The exchange of potentially sensitive transaction metadata across national tax authorities raises questions about how data will be protected, how long records will be retained, and what safeguards will apply to secondary uses of the information. Next steps and timing Because the exposure draft uses delegated powers to define many particulars, the consultation is a meaningful opportunity for exchanges, custodians, tax practitioners and privacy groups to influence how the rules operate. Submissions made by today will inform the drafting of regulations and the ATO implementation timetable. If the government proceeds on the timetable signalled in explanatory materials, businesses can expect the domestic reporting regime to begin in 2027, with the first international exchanges of CARF data involving Australia scheduled for 2028. Firms that provide crypto services should therefore be assessing systems, policies and customer onboarding practices now, and planning for phased compliance testing ahead of statutory start dates. Why this is a broader test for crypto policy in Australia The draft legislation is the latest major step in a broader package of reform in Australia covering licensing, anti money laundering registration, and regulatory guidance from the securities regulator. Taken together the measures reflect a shift from permissive experimentation toward tighter oversight and alignment with global standards. For entrepreneurs and investors that means clearer compliance expectations, but also higher operational costs and greater visibility for previously opaque flows of crypto value. For Australians who hold or trade crypto, the immediate takeaway is straightforward. If you use an Australian platform or a platform that chooses to report Australian customers, tax relevant activity is likely to be captured automatically in the near term. That will simplify tax administration for many users, but it also increases the importance of correctly reporting gains and losses on tax returns, and of keeping accurate records of crypto transactions. The exposure draft and related consultation materials are published by the Australian Treasury. Today, October 28, 2026, is the final day for public submissions to be received under the current consultation timetable.