Common Reporting Standard (CRS)

In September 2014, the Government announced that Australia would implement the OECD’s Common Reporting Standard (CRS) for the automatic exchange of financial account information.

The CRS tackles and deters cross-border tax evasion by establishing a common international standard for financial institutions to identify and report information about the financial accounts of foreign residents to their local tax authority and for tax authorities to exchange this information. Under the CRS, a Reporting Financial Institution applies the due diligence rules to identify eligible financial accounts held by residents of other jurisdictions and then reports required information to their local tax authority. This information is then sent to the non-residents’ tax authority.

In Australia, the financial institutions covered by the CRS would include banks, building societies and credit unions, life insurance companies that offer insurance products that include an investment component, private equity funds, managed funds, exchange traded funds and brokers that hold financial assets for the account of others.

Australia signed the CRS Multilateral Competent Authority Agreement (MCAA) on 3 June 2015. The MCAA enables CRS information to be exchanged between countries’ tax authorities, provided legislation requiring financial institutions to identify and report the information and administrative arrangements for the exchange of information between tax authorities are in place. This draft legislation is designed to establish the legislative requirements for Australian financial institutions.

If you have any questions regarding the CRS or would like to be involved in future consultation please email the CRS Project Team.

The ATO will be undertaking targeted consultation with financial institutions in the coming months on key issues for Australia’s implementation of the Common Reporting Standard (CRS).

In September 2014, the Government announced that Australia would implement the OECD’s Common Reporting Standard (CRS) for the automatic exchange of financial account information.

The CRS tackles and deters cross-border tax evasion by establishing a common international standard for financial institutions to identify and report information about the financial accounts of foreign residents to their local tax authority and for tax authorities to exchange this information. Under the CRS, a Reporting Financial Institution applies the due diligence rules to identify eligible financial accounts held by residents of other jurisdictions and then reports required information to their local tax authority. This information is then sent to the non-residents’ tax authority.

In Australia, the financial institutions covered by the CRS would include banks, building societies and credit unions, life insurance companies that offer insurance products that include an investment component, private equity funds, managed funds, exchange traded funds and brokers that hold financial assets for the account of others.

Australia signed the CRS Multilateral Competent Authority Agreement (MCAA) on 3 June 2015. The MCAA enables CRS information to be exchanged between countries’ tax authorities, provided legislation requiring financial institutions to identify and report the information and administrative arrangements for the exchange of information between tax authorities are in place. This draft legislation is designed to establish the legislative requirements for Australian financial institutions.

If you have any questions regarding the CRS or would like to be involved in future consultation please email the CRS Project Team.

The ATO will be undertaking targeted consultation with financial institutions in the coming months on key issues for Australia’s implementation of the Common Reporting Standard (CRS).

Consultation

  • Automatic Exchange of Information guidance

    4 months ago

    Published 14 April 2016

    Our Automatic Exchange of Information guidance (covering both FATCA & CRS) has now been published. The guidance includes additional information about the institutions and processes required to report under the CRS. This will be updated from time to time in response to international developments and feedback from stakeholders.

    Published 14 April 2016

    Our Automatic Exchange of Information guidance (covering both FATCA & CRS) has now been published. The guidance includes additional information about the institutions and processes required to report under the CRS. This will be updated from time to time in response to international developments and feedback from stakeholders.

  • Expected implementation timeline

    7 months ago

    Expected implementation timeline (PDF)

    2016

    March 2016
    Automatic Exchange of Information (AEOI) guidance for CRS & Foreign Account Tax Compliance Act (FATCA) to be released.

    July 2016
    Final IT technical specifications for domestic reporting available.

    2017

    30 June 2017
    Test date for determining high and low value accounts.

    1 July 2017
    Date of effect of the CRS legislation.

    Generally accounts opened on or after this date are to be treated as 'new accounts'.

    2018

    31 July 2018
    Australian Reportable Financial Institution (RFI) report due to the ATO for the previous calendar year.

    30 September 2018
    Date exchanged with partner jurisdictions.

    2019

    31 July 2019
    Australian RFI report due to the ATO for the previous calendar year.

    30 September 2019
    Date exchanged with partner jurisdictions.


    Note

    For the first CRS reporting period, where reports are due to the ATO on 31 July 2018, the report data is for the 6 months 1 July 2017 to 31 December 2017. Thereafter reports will cover the full calendar year.

    Due diligence requirements

    Account type

    High/Low value test date

    Due diligence completion
    and reporting date

    Individual account

    • Pre-existing Low value

    30 June 2017

    31 July 2019

    • Pre-existing High value

    30 June 2017

    31 July 2018

    Pre-existing entity account

    n/a

    31 July 2018


    Expected implementation timeline (PDF)

    2016

    March 2016
    Automatic Exchange of Information (AEOI) guidance for CRS & Foreign Account Tax Compliance Act (FATCA) to be released.

    July 2016
    Final IT technical specifications for domestic reporting available.

    2017

    30 June 2017
    Test date for determining high and low value accounts.

    1 July 2017
    Date of effect of the CRS legislation.

    Generally accounts opened on or after this date are to be treated as 'new accounts'.

    2018

    31 July 2018
    Australian Reportable Financial Institution (RFI) report due to the ATO for the previous calendar year.

    30 September 2018
    Date exchanged with partner jurisdictions.

    2019

    31 July 2019
    Australian RFI report due to the ATO for the previous calendar year.

    30 September 2019
    Date exchanged with partner jurisdictions.


    Note

    For the first CRS reporting period, where reports are due to the ATO on 31 July 2018, the report data is for the 6 months 1 July 2017 to 31 December 2017. Thereafter reports will cover the full calendar year.

    Due diligence requirements

    Account type

    High/Low value test date

    Due diligence completion
    and reporting date

    Individual account

    • Pre-existing Low value

    30 June 2017

    31 July 2019

    • Pre-existing High value

    30 June 2017

    31 July 2018

    Pre-existing entity account

    n/a

    31 July 2018


  • Consultation on detailed IT specifications

    7 months ago

    The CRS project team will be working with the ATO’s Software Industry Partnership Office (SIPO) to develop the detailed IT specifications for domestic CRS reporting.

    A Technical and Special Purpose Working Group will oversee the development of these specifications. Information about this partnership and the consultation on detailed IT specifications can be found on the CRS SIPO landing page.


    The CRS project team will be working with the ATO’s Software Industry Partnership Office (SIPO) to develop the detailed IT specifications for domestic CRS reporting.

    A Technical and Special Purpose Working Group will oversee the development of these specifications. Information about this partnership and the consultation on detailed IT specifications can be found on the CRS SIPO landing page.


  • October 2015 CRS consultation survey

    10 months ago

    Following the July consultation paper, a survey has been released to gather further information about current practices and estimated reporting volumes of CRS Reportable Financial Institutions and intermediaries. This feedback will assist us to better understand stakeholder capabilities and the support that may be required as we implement the CRS.

    Complete the survey
    Click or copy and paste the URL below into your internet browser: https://ato.au1.qualtrics.com/SE/?SID=SV_3ghjZgUZ4bs8DJP

    The survey will take 10 to 15 minutes to complete. The survey closes at 5pm on Friday 6 November 2015. Your responses will be kept anonymous, only aggregated data will be reported.

    Following the July consultation paper, a survey has been released to gather further information about current practices and estimated reporting volumes of CRS Reportable Financial Institutions and intermediaries. This feedback will assist us to better understand stakeholder capabilities and the support that may be required as we implement the CRS.

    Complete the survey
    Click or copy and paste the URL below into your internet browser: https://ato.au1.qualtrics.com/SE/?SID=SV_3ghjZgUZ4bs8DJP

    The survey will take 10 to 15 minutes to complete. The survey closes at 5pm on Friday 6 November 2015. Your responses will be kept anonymous, only aggregated data will be reported.

  • July 2015 consultation paper: Domestic reporting system

    10 months ago

    The consultation paper released in July 2015 sought stakeholder submissions on the proposed domestic reporting system for Australia’s implementation of the CRS for the automatic exchange of financial account information. The two proposed options were the use of the OECD CRS XML schema for bulk lodgments and a web application for smaller, simple file formats.

    The consultation paper released in July 2015 sought stakeholder submissions on the proposed domestic reporting system for Australia’s implementation of the CRS for the automatic exchange of financial account information. The two proposed options were the use of the OECD CRS XML schema for bulk lodgments and a web application for smaller, simple file formats.