Cryptocurrency, such as bitcoin, is an allowable SMSF asset by iCare Super.
When you trade any crypto assets, please follow the steps as below:
We recommend reading the following ATO guidelines before you starting investing in cryptocurrencies.
Trustees should meet the guidelines in the above link and detail in minutes how they meet the guidelines.
Trustees should only use exchanges and products which will allow them to meet the guidelines set.
Trustees also need to detail in their investment strategy how they intend to manage associated risks.
If you are not familiar with cryptocurrencies, you should read the investment warnings on ASIC website to understand what they are and the risks involved.
You can click the link as below:
Trustees are reminded that breaches may lead to the ATO deeming an SMSF non compliant which may enable them to tax the super fund 49% of its asset holding and deny the 15% concessional tax.
Common questions asked in regards to Cryptocurrency:
1. Can I use my personal wallet and storage device/services for the cryptocurrency purchased in my SMSF?
No, you need to purchase the wallet and storage device/services in the name of your SMSF.
2. Can I deposit my personal Cryptocurrencies into my SMSF?
No. It is not allowed at this stage. Only listed shares and commercial property can be transferred to the SMSF.
Yes if you can justify these costs are exclusively used for running your SMSF and cryptocurrency trading.
Tax on cryptocurrency trading
cryptocurrency trading is subject to capital gain tax in the SMSF.
The tax rate is as below: