Australia’s government announced its upcoming initiative regarding the development of its digital asset industry on 21 March 2025. The Albanese Government is developing a fit for purpose digital asset regime to help build a more dynamic and competitive economy.
The Albanese government has released the Board of Taxation’s Review of the tax treatment of digital assets and transactions in Australia. The report concludes that the taxation of digital assets and transactions can already be accommodated under existing tax law. Any uncertainty can be effectively managed by the Australian Taxation Office (ATO), which provides additional guidance materials. In response to the report, the ATO has agreed to form a bespoke and time‑limited crypto working group that will consult with industry and tax professionals to develop a package of publicly available crypto tax advice.
The government has also released a Statement on Developing an Innovative Australian Digital Asset Industry to provide clarity and certainty to the digital assets sector. The announcement highlights the release of the Board of Taxation’s Review of the Tax Treatment of Digital Assets and Transactions in Australia on the tax treatment of digital assets and transactions (crypto assets) in Australia.
The statement highlights that digital assets and blockchain represent big opportunities for the economy, financial sector, payments industry and capital markets. The government wants to seize these opportunities and encourage innovation at the same time as making sure Australians can use and invest in digital assets safely and securely with appropriate regulation.
The Statement outlines the four key pillars of our approach to digital assets:
- a framework for Digital Asset Platforms (DAPs), to provide certainty for industry and protection for consumers,
- a framework for payment stablecoins, under the Government’s Payments Licensing Reforms,
- undertaking a review of Australia’s Enhanced Regulatory Sandbox environment to ensure it is fostering innovation, and
- a suite of initiatives to investigate ways to safely unlock the potential benefits of digital asset technology across financial markets and the broader Australian economy.
Earlier, in November 2024, the Australian Treasury released a consultation paper detailing Australia’s plan to adopt the OECD’s Crypto Asset Reporting Framework (CARF) and related updates to the Common Reporting Standard (CRS).
