October 17, 2020
Everyday thousands of Australian’s are utilising their Self Managed Super Funds (SMSFs) to invest in Bitcoin and other cryptocurrencies. This becoming an attractive option to invest in Bitcoin due to the taxation benefits that are provided with SMSF accounts.
There are many Bitcoin exchanges in Australia that onboard SMSF accounts, which enable their clients to easily buy and sell Bitcoin and cryptocurrencies using their self managed superfund. It is important to note that SMSFs that choose to buy or sell Bitcoin and other cryptocurrency must keep all records in relation to their transactions. There will also be super regulatory considerations for SMSF trustees and members.
Further, although SMSFs are allowed to invest in Bitcoin and cryptocurrencies, the investment must:
- Be approved under the relevant deed trust for the SMSF
- Be in accordance with the SMSFs investment strategy
- Comply with relevant SISA and SISR regulations
Buy Bitcoin Finder recommends that people looking to invest in Bitcoin with an SMSF seek independent professional advice prior to undertaking an investment in Bitcoin with their SMSF in Australia.
- Investment Strategy. It is important to consider that your SMSF investment strategy must include liquidity, diversification, insurance and ability to pay.
- Sole-purpose test. Your SMSF must be for the sole purpose of providing and creating retirement benefits to trustees and members. Trustees or members must not directly, or indirectly obtain financial benefits from their SMSF account (for example accruing affiliate fees through cryptocurrency exchanges).
- Storage. Custody and storage is always an important consideration when dealing with Bitcoin and cryptocurrencies, particularly if you are dealing with large sums through your SMSF. If you are not comfortable using a hardware. wallet, we recommend an SMSF friendly cryptocurrency exchange like Independent Reserve that offer top tier security and insurance on digital assets.
Unfortunately, you cannot buy Bitcoin on Commsec or other banking applications - so going with a local exchange is your best bet. We recommend using Independent Reserve to invest in Bitcoin with your SMSF. They are Australia’s most trusted exchange and provide a platform that makes investing in Bitcoin and cryptocurrency extremely easy using your Self Managed Super Fund.
The benefits of using Independent Reserve to invest in Bitcoin with your SMSF are:
- Easy onboarding and verification. Australia’s best local SMSF support team.
- Simple user interface to buy Bitcoin.
- KPMG Co-integrated tax tool that lets you calculate your tax obligations at the click of a button.
- A BGL integration that easily allows you to complete all of your SMSF compliance and administration
- Australia’ premier OTC (Over-the-counter) desk that allows you to trade over $100,000 AUD of Bitcoin or cryptocurrency.