Let’s Dive into the Cryptocurrency SMSFs


We all are living in a digital world where there are many modes of investment, we have. Still, in Australia, one form of investment is getting all the limelight at this point, and that investment option is Self Managed Super Fund Crypto Australia. If you live in Australia, you may already know all about the SMSF. If you don’t know about that, we are here to help you.

What is an SMSF?

SMSF stands for the self-managed super fund. It is a private super fund over which the trustees have complete control. The trustee can up to 6 members, and they are solely responsible for the fund, choosing the investments and take all the necessary decisions. You and your members run the SMSF for financial gain and are solely responsible for complying with the super and tax laws. With the SMSF, you get access to a wide range of advanced features that are missing from other funds. You get the option of portfolio tracking and earning yields on certain crypto assets.

Crypto SMSF in Australia

Regarding investing in cryptocurrency, Australia already has very generous rules and tax structures associated with digital currencies. One of the most notable choices for investors is to include Bitcoin, and other cryptocurrencies within an investment strategy is an SMSF. The next question is whether the Cryptocurrency SMSFs in Australia are legal or not. It is entirely legal to invest in Bitcoin and other cryptocurrencies. The ATO considers the capital gains tax (CGT) assets meaning you must take a complete record of when you buy, sell or trade cryptocurrency so that it can be reviewed and taxed accordingly.

Types of Assets included in an SMSF

Unlike other funds, the SMSF allows the trustees more autonomy over asset choice and insurance. It is quite a flexible investment vehicle and can include cryptocurrency, gold, diamonds, private equity, and antique collectables such as wine and art. The level of freedom that you get with an SMSF is astonishing. You get to add lots of assets without requiring approval from any agencies and continue to increase your investment.

Associated Regulations

The Australian government had made specific rules that SMSF trustees must follow to qualify for the SMSF. To prepare the funds, one must follow all the requirements of the Superannuation Industry (Supervision) Act by the ATO. Every trustee must be aware of the changes to the law. Fund trustees are also required to maintain compliance since all fund trustees are responsible for compliance.

Tax Rate for SMSFs in Australia

Tax benefits are one of the sole reasons why you must go for an SMSF. The current tax rate on an SMSF is low as 15%. Long-term capital gains tax rate of 10%. The tax rate is much lower than typical marginal tax rates for individuals. To claim all the benefits, your SMSF must be classified as a complying fund; otherwise, a non-complying SMSF must pay the highest marginal tax rate.


SMSFs are a type of retirement savings fund, according to the ATO. SMSF members also serve as its trustees than other types of funds. They are responsible for compliance, preparing reports, and paying out taxes. SMSF tax benefits make the SMSF a popular choice for cryptocurrency holders.

Book in a free consultation and chat with one of our SMSF experts? Contact us here Self-managed super fund bitcoin

Disclaimer- This content should not be considered financial advice and is for educational or informational purposes only.