Buying Crypto with your SMSF


Using your SMSF to invest in Crypto

In 2014, the ATO declared bitcoin and other cryptocurrencies as capital assets and not money. This determination opened the doors for SMSFs to transact in cryptocurrencies provided they follow certain terms and conditions.

If you’re looking to add cryptocurrencies to your SMSF investment portfolio, here are a few key things you need to keep in mind.

Cryptocurrency investments are unlike traditional investments in that they don’t generate an income. They lack a defined return and rely solely on the potential appreciation of the crypto’s value.

In order for an SMSF to invest in crypto, the investment must:

1. Be allowed for under the fund’s deed

2. Be in accordance with the fund’s investment strategy

3. Comply with SISA and SISR regulations

Before investing in crypto, an SMSF’s trustees must consider the level of risk associated with this investment. They may need to review and update their fund’s investment strategy to ensure the investment is allowed. The strategy must outline:

- Investment liquidity

- The outline of the fund’s investments as a whole

- The risks involved as well as the likely returns


How can your SMSF buy and sell cryptocurrencies?

To invest in crypto, your SMSF must:

· Create a separate digital wallet owned solely by the SMSF – make sure the wallet is compliant with super regulations

· Ensure SMSF crypto holdings are kept separately from personal crypto assets

· Get a crypto exchange account, preferably with an Australia-based platform such as ZebPay

· Keep track of all exchanges and make them as simple and transparent as possible




The proceeds received from crypto exchanges should be transferred directly to the fund’s bank account and declared as part of the fund’s annual report to the ATO.

What are the tax implications crypto investments?

Cryptocurrencies are regarded as assets for capital gains tax (CGT) purposes. Crypto holdings must be values, in AUD, at their current market rate as of June 30 for the purpose of reporting. A detailed blog regarding how SMSFs are taxed for holding cryptocurrency can be viewed on our partner website.

Finally, as per the ATO, an SMSF’s sole purpose is to provide retirement benefits to its trustees and their dependents should they die before retirement. As such, before a fund can purchase cryptocurrency assets, they must satisfy the sole purpose test.

Getting started

Investing in crypto with your SMSF may be highly rewarding, if done right.

However, always remember that our SMSF experts are available at all times to give you the most up-to-date investment and compliance advice that is best structured for your specific circumstance.

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,Disclaimer:, Information included in this post is of general nature, it has been prepared without taking into account your specific situation. It is not intended to be and does not constitute financial advice, investment advice, trading advice, or any other advice. You should not make any decision, financial or otherwise, based on any of the information presented here without undertaking independent due diligence and consultation with a professional accountant or financial adviser.


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