Common Reporting Standard for the automatic exchange of financial account information
The Common Reporting Standard (CRS) is the single global standard for the collection, reporting and exchange of financial account information on foreign tax residents. Under it, banks and other financial institutions will collect and report to us financial account information on non-residents. We will exchange this information with the participating foreign tax authorities of those non-residents.
In return, we will receive financial account information on Australian residents from other countries' tax authorities. This will help ensure that Australian residents with financial accounts in other countries are complying with Australian tax law and act as a deterrent to tax evasion.
Legislation
The CRS legislation received Royal Assent on 18 March 2016 and came into effect on 1 July 2017. The first exchange of information will occur in 2018.
See also:
Table 1: Expected implementation timeline
Date
|
Event
|
April 2016
|
Automatic exchange of information (AEOI) guidance for CRS and Foreign Account Tax Compliance Act (FATCA) released
|
December 2016
|
Domestic reporting format finalised
|
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
|
31 July 2018
|
Australian Reportable Financial Institutions (RFI) CRS report due to the ATO for the previous calendar year
|
30 September 2018
|
Data exchanged with partner jurisdictions
|
31 July 2019
|
Australian RFI report due to the ATO for the previous calendar year
|
30 September 2019
|
Data 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 from 1 July 2017 to 31 December 2017. Later reports will cover the full calendar year.
Table 2: Due diligence requirements
Account type
|
High/low value test date
|
Due diligence completion and reporting date
|
Pre-existing low value Individual account
|
30 June 2017
|
31 July 2019
|
Pre-existing high value Individual account
|
30 June 2017
|
31 July 2018
|
Pre-existing entity account
|
n/a
|
31 July 2018
|
Guidance material
Financial Institutions
To assist financial institutions to understand how the CRS may affect them and their clients, we have produced guidance material that will be updated as we receive and respond to further questions from industry.
Customers
To assist customers, investors and other account holders with financial institutions to understand how the automatic exchange of information affects them, we have produced a brochure with summarised information – see Foreign tax resident reporting (PDF, 112.11KB)This link will download a file
Tax agents
To assist tax agents to understand how the CRS may affect them and their clients, we have produced a brochure with summarised information.
Important information on how to prepare and lodge your CRS report
Third party reporters
For information on preparing and lodging the CRS report, refer to Third party reporting for CRS.
Not-for-profits
The CRS may impact not-for-profits (NFP) organisations. For further information and to determine if you have a reporting obligation under the CRS, refer to Not-for-profits and the Common Reporting Standard.
Digital service providers
For information on the CRS XML schema and technical updates, refer to Information for CRS reporters and digital service providersExternal Link.
Supporting material
More information
If you have further questions regarding the CRS please contact the CRS Project Team.
To receive the latest CRS news and information you can subscribe to our CRS stakeholder group. To do this, email the CRS Project Team with your contact details.
In the Mid-year Economic and Fiscal Outlook 2014–15, the government announced it will implement the OECD Common Reporting commencing 1 July 2017. The first exchange of information will occur in 2018.