Adding cryptocurrency to an SMSF can significantly increase the risk profile of your fund. Given the volatility of the cryptocurrency markets, there is the possibility of low or negative returns on your investment and you will not have access to the Australian Financial Complaints Authority in relation to your investment in cryptocurrency.
SMSF members are wholly responsible for ensuring that their fund is compliant with the regulations contained in the Superannuation Industry (Supervision) Act and must maintain compliance even if the law changes. Members must also ensure that any cryptocurrency investments comply with the fund’s trust deed and investment strategy.
We strongly recommend you seek professional advice before deciding to add cryptocurrency to your fund’s portfolio.
Yes, you can add crypto to your SMSF by signing up to CoinJar with an SMSF account. However, before you do you’ll need to ensure that any investment in cryptocurrency is compliant with the fund’s trust deed and in accordance with your SMSF’s investment strategy.
For more information on setting up an SMSF, check out the ATO’s dedicated page.
We offer our crypto SMSF customers a smooth and guided onboarding process, along with low trading fees – starting at 0% on CoinJar Exchange – super simple EOFY reporting, institutional-grade security and knowledgeable, local 7-day a week customer support.
You can buy any of the more than 50 cryptocurrencies we offer, from Bitcoin to Ethereum, XRP, DOGE, USDT or PAXG (which tracks the price of gold).
At CoinJar the safety of our customers’ assets is our highest priority. We are one of the longest-running crypto exchanges on the planet and have been operating with no unplanned downtime, security breaches or loss of customer funds since 2013. We keep more than 90% of our assets in cold storage or private, multi-sig wallets and maintain full currency reserves at all times.
There are establishment costs in setting up an SMSF correctly. The easiest way to do this is through a dedicated SMSF professional and the process will likely cost between $1,500 and $2,500+, depending on the complexity of your fund. (See this report for more detail.)
When your SMSF is up and running you can expect to pay between $1,200 and $2,500+ per year in administrative fees, although again the level will depend on the complexity of your SMSF.
You’ll need to submit certain information in relation to your SMSF, including the registered trust name, address, ABN, directors, beneficial owners and beneficiaries. The required documents include a copy of the trust deed. All trustees (individual or corporate) must also be verified on CoinJar.
Once we have all your documentation, your CoinJar SMSF account should be ready in 1 business day.
No, you need to create a specific SMSF account. There will be an option to specify that this is an SMSF account during the sign-up process.
If you want to attach the same phone number to a personal and SMSF account, please contact email@example.com.
Yes, as with all investments you’ll need to pay tax on any capital gains you make by buying and selling crypto through your SMSF.
However, SMSFs are given certain tax concessions and capital gains are typically taxed at a flat rate of 15%. If the asset has been held for more than 12 months, it may also attract a long-term capital gains discount of one-third – meaning the tax rate on gains will only be 10%. Any income generated by assets in the fund (i.e. through staking) will be tax-free.
Note that these rates only apply to funds that are fully compliant with the regulations contained in the Superannuation Industry (Supervision) Act. If your fund is deemed to be non-compliant, you’ll be charged the highest marginal tax rate.
For a summary of how tax works for SMSFs, click here. For more information about tax and cryptocurrency in general, check out our comprehensive guide.
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