Everything You Need to Know About SMSF Crypto

What is a Self-Managed Super Fund (SMSF)?

A Self-Managed Super Fund (SMSF) is a private superannuation fund that you manage yourself. Instead of your retirement savings being controlled by an industry or retail super fund, the members of the SMSF act as trustees and are responsible for all investment decisions.

SMSFs are regulated by the Australian Taxation Office (ATO) and must follow strict rules around compliance, record-keeping, and investment strategy. An SMSF can invest in traditional assets such as shares and property, as well as alternative assets like cryptocurrency, provided these investments are permitted under the fund’s trust deed.

How much does an SMSF cost to run?

SMSFs involve ongoing costs regardless of investment performance. Typical expenses include accounting, annual audits, tax reporting, and administration.

• Initial setup: approximately $1,000–$3,000 (one-off)
• Annual running costs: typically $2,000–$4,000+
• Additional costs for property, custody services, or specialist advice

Because SMSF costs are mostly fixed, they generally become more cost-effective at higher balances. Many advisers suggest balances of $200,000 or more, though control rather than cost is often the main motivation.

Pros and cons of Self-Managed Super Funds

Potential benefits

• Direct control over investment decisions
• Ability to invest in assets not available in many retail funds
• Transparent view of holdings and transactions
• Potential tax efficiency within superannuation rules

Things to consider

• Trustees are legally responsible for compliance
• Penalties can apply if SMSF rules are breached
• No government compensation scheme for losses
• Requires time, organisation, and ongoing oversight

Why do some Australians use crypto in an SMSF?

Some SMSF trustees choose to include Bitcoin or other cryptocurrencies as part of a broader diversification strategy. Cryptocurrency is treated as an investment asset within superannuation, and must align with the fund’s documented investment strategy.

• Exposure to digital assets outside traditional markets
• Bitcoin’s fixed supply and global liquidity
• Long-term holding potential within a concessional tax environment
• Portfolio diversification alongside shares and property

Using CoinSpot for SMSF cryptocurrency investing

CoinSpot is an Australian-based cryptocurrency platform that has supported SMSF investors for many years. It provides tools designed to help trustees manage crypto assets within a compliant superannuation structure.

• Dedicated local support familiar with SMSF requirements
• Access to over 530 cryptocurrencies
• End-of-financial-year reporting for tax and audit purposes
• Read-only portfolio access for accountants and advisers
• OTC trading services for larger SMSF transactions

To open an SMSF account, CoinSpot requires standard trust documentation to ensure the account is correctly established in the name of the fund.