SMSF CRYPTO ADMINISTRATION IN AUSTRALIA [Best Step By Step Guide 2021-2022]

By September 28, 2021 Blogs

At My SMSF, our goal is to help SMSF Crypto Administration in Australia investors with the onerous task of accounting and auditing their SMSFs that hold bitcoin and other cryptocurrencies so the fund remains compliant and easy to manage, with our custom-built tools and the cheapest SMSF Crypto administration Australian.

Cryptocurrencies represent opportunity and risk depending on which end of the spectrum you sit, but there can be no argument about the returns derived by investing in Bitcoin and Ethereum, and many other crypto coins over the last ten years.

As a result, this emerging niche asset class has created a lot of interest for younger Australians who cannot afford homes in the eastern states, that are eyeing the eye-watering returns in Bitcoin and Ethereum as a way to get on to the property ladder. Many Australians are unaware that crypto may be held in SMSF. wide.

There is no doubt that cryptocurrency has officially entered the mainstream for Australian SMSF investors, with many funds investing approximately 5% of their total assets in Crypto. Quite clearly from the ATO fund figures, the picture paints a tale of growing investment.

My SMSFs View on SMSF Crypto Administration in Australia:

We believe that being in charge of your own money and having control of your super, should be a goal for all Australians and that taking charge of your retirement funds via an SMSF is the best way to achieve this goal of ownership and control.

In all markets, returns are coupled with inherent risks as is the nature of all investing which entails speculating on future returns and income of assets based on credible analysis and at times the practices of others to lead our way.

Cryptocurrencies, according to My Smsf /  My SMSF Property, are a unique addition to portfolios because they are uncorrelated to existing asset classes and are rapidly growing in popularity with consistent, high returns over ten years making adding cryptocurrency as an asset class a compelling proposition for many SMSF investors.

My SMSF  works closely with Australia’s top crypto exchanges to ensure that the service we provide for SMSF crypto administration Australia-wide is, cheap, feature-packed and it comes with five years ( 5 )of expertise and experience managing SMSF Crypto Administration Australia wide.

We have found that most accounting practices lack the experience and knowledge to provide SMSF Crypto Administration services. Further, most charge much higher fees for SMSF Crypto Administration compared with My SMSF, which is arguably the leader in this field.

Crypto is becoming more popular among SMSFs:

In October 1999, the Self-Managed Super Funds (SMSF) were introduced. They have been popular with many self-employed and professional investors who want to diversify their portfolios based on their personal investment beliefs and build up their retirement nest eggs by investing in alternative assets such as Bitcoin, Gold, and Diamonds via an SMSF.

Australians have been able to invest in cryptocurrency through their SMSF, however, they need to consider the following before embarking on this crypto journey in their SMSFs. Let us look at the key considerations for SMSF Crypto Administration in Australia Investors.

Considerations for SMSF Crypto Investors:

We have highlighted the significant and growing interest in SMSF Crypto Administration services over the last five years in particular. Here are three key mandatory steps, before you start investing in crypto via an SMSF.

  • The trust deed for your SMSF must not restrict Crypto investments
  • The investment in bitcoin and cryptocurrency must be in line with the investment strategy of your fund or it must be updated.
  • The assets must not be mixed with personal crypto assets and managed securely and compliantly in accordance with tax and super laws.

 The Sole Purpose Test:

Considering if Bitcoin and cryptocurrencies are an appropriate investment for an SMSF and if it passes the sole purpose test, is the critical mustard test. Given consistent returns over ten years and the growth in SMSF Crypto Administration in Australia reporting services and over seven years of practice, it is clear that SMSF crypto does not contravene the sole purpose test, although suitability is a decision left to the SMSF members and their risk appetite and goals.

It is fair to say that, an SMSF member/trustee can invest in any asset that is not excluded by super laws ( SIS Act) as long as the trust deed allows it and the investment strategy reflects the assets class.

My SMSF Crypto administration Australian wide for SMSFs:

So, you’ve decided to set up an SMSF?

Here are some things to check before you engage us:

  • Do your research and complete free SMSF courses to manage your responsibilities
  • Read our terms and view our fee schedule
  • Complete an online application or download our android app to start the process.

While there is no legal minimum for forming an SMSF, anyone considering doing so should consider if the fees of setting up and running an SMSF are appropriate for their situation and goals. It usually takes 3 -12 weeks to get your SMSF setup and super rolled over into your new SMSF cash account and we aim to make this process as easy as possible.

SMSF SETUP – How to Get Started:

Complete our online form:

It will take about five minutes to complete the online application form. Aside from basic information like dates of birth and addresses, emails and phone numbers, we will securely capture your personal TFNs and ID and ask for payment online via the Poli system. You may sign documents with an electronic signature (e-signature) or conventionally.

Wait for the SMSF to be approved by the ATO:

The ATO typically takes anywhere from a day to 21 days to approve your funds ABN. You can contact them to get an update or we will notify you if you appoint us as a contact on your behalf.

Get access to your private online portal:

All of your establishment documents will be in our client dashboard, where you can access a variety of tools.

What we do when setting up an SMSF:

  • We set up a company to act as your SMSF Trustee Company
  • We apply for an ABN/TFN number for your SMSF with the ATO
  • We provide your SMSF with a Trust Deed
  • We provide you with a
  • investment strategy, binding nominations, ATO declarations
  • We set up an ESA Address with Macquarie or GBST
  • We set up a Macquarie Bank Account for your SMSF
  • We provide you with Super Rollover Forms
  • We help with employer super contribution – Choice of Fund Forms

for an additional fee of $330, we can help you with SMSF Crypto Exchange and Cold wallet services.

SMSF is good to go:

You’re now ready to invest and manage your retirement savings. Aside from pleasant follow-ups to confirm your satisfaction with our service, you will only receive a few emails from us at the end of each fiscal year requiring your action. These emails will contain instructions to start your tax and audit work via our SMSF panel partners

To finish your tax return, you’ll need to upload statements and receipts to our online client dashboard and deal with the admin and tax team within our app.

You can sign your tax return documents electronically and complete all tasks within the app with ease.

If you have any questions during or after the setup process, please call us at 1300 545 516 or email us at [email protected] and we would be happy to help.

CONCLUSION:

Crypto assets certainly pose a high risk due to constant volatility which does make this asset class only suitable for high-risk investors and those who understand the crypto adoption story and find the tax-free capital gain in the pension phase a great reason to place crypto investments into an SMSF for retirement needs.

With a licensing regime managed by Austrac for Digital Currency Exchanges and Providers and Tax laws administered by the ATO since 2014, we feel that SMSF Crypto Administration in Australia investors should feel confident with these measures in place.

My SMSF has additional videos and guides and support for SMSF Crypto Administration Australia-wide for SMSF investors and welcomes the opportunity to manage your SMSF and help you maintain compliance with your Crypto SMSF.

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