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AU | All you need to know about your Super Fund account


How to purchase crypto-assets with your Self Managed Super Funds?

By using a Self Managed Super Fund(SMSF), it is possible to build wealth-owning crypto-assets but there are a few steps required in order to achieve this. Crypto has risks so the first step is making sure your fund’s trust deed and written strategy can accommodate these risks. You should also confirm that any crypto-assets holdings in your SMSF will be compliant with regulatory requirements.


Why purchase crypto-assets via an SMSF?

People are buying crypto-assets via their SMSF to take advantage of the potential returns of this market and diversify their assets. This area is new and Wealth99 can help you understand the marketplace.


Can my SMSF purchase crypto-assets?

More than 10,000 SMSFs have already bought Crypto. The Australian Tax Office (ATO) does not prohibit SMSFs from buying crypto-assets; however, the following criteria must be met.

- Be allowed under the fund’s trust deed.
- Be in accordance with the fund’s strategy.
- Comply with SISA and SISR regulatory requirements.
- The Sole-purpose test.


Taxation and benefit of SMSF?

Crypto-asset gains and losses are typically taxed as capital gains and losses by the ATO. When you sell crypto-assets, including trading one crypto-assets for another, you trigger a capital gains event, and if you have made a profit from the transaction then you will have to pay Capital Gains Tax (CGT). This is where your SMSF tax benefits come in. As SMSF holdings, those crypto-asset gains will typically be taxable at a discounted rate rather than the full rate. For more information, please visit the ATO by clicking here.


Can I mix my SMSF crypto-assets holdings with my personal crypto-assets holdings?

All SMSFs must comply with the sole-purpose test. This test requires the fund to provide retirement benefits to the fund member or members or be distributed to dependents in the event of death before retirement. Any personal use of crypto-assets that was acquired by the SMSF would breach this requirement, as it must remain separate from personal assets. It is easy to transfer crypto-assets from your SMSF holdings to a personal account, but by doing so it will constitute a personal benefit thus resulting in a breach of the sole-purpose test.