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Cryptocurrency, such as bitcoin, is an allowable SMSF asset by iCare Super. 

When you trade any crypto assets, please follow the steps as below:

  1. Check if your trust deed and investment strategy allow trustee to invest in crypto-currency, such as bitcoin. Please note any SMSFs set up by iCare Super will allow trustees to invest in crypto-currency
  2. Crypto-currency and bitcoin must be purchased in the name of your SMSF (or SMSF trustee)
  3. Purchase the crypto and keep all in your wallet
  4. When you sell crypto assets, you need to transfer the proceeds to the SMSF bank account
  5. If possible, check your auditor is comfortable with auditing bitcoin or crypto-currency. The auditor at iCare Super can audit these crypto assets.
  6. Some shares can be bought using bitcoins, these shares must be bought in the name of your SMSF (or trustee)

We recommend reading the following ATO guidelines before you starting investing in cryptocurrencies.

ATO Cryptocurrencies Guidelines

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:

Cryptocurrencies ASIC Warnings

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. 

3.Can I pay subscription/course expenses for cryptocurrency trading?

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:

  • 15% on the profit  if the holding period is less than 1 year;
  • 15% on the profit  if the holding period is more than 1 year;
  • nil tax on the profit if all members are more than 1)60 years old and full retired or 2) more than 65 years old.
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