Self-Managed Super Funds

Cryptocurrency Self-Managed Super Funds are a new way to invest in digital assets. Unlike traditional managed funds, the investor controls these new funds. These guidelines mean that investors can make all the decisions about what to buy and sell, and they don’t have to rely on the advice of financial professionals.

While this new investment fund offers many advantages, there are also some risks. Before investing in a cryptocurrency self-managed super fund, be sure to do your research and understand all the risks involved.

There is a growing trend of people using cryptocurrency self-managed super funds (SMSFs) to invest in digital assets. This is because SMSFs offer many benefits, such as flexibility, control, and tax advantages.

However, there are also some risks associated with SMSFs. For example, if the value of your cryptocurrency goes down, you could lose money. Additionally, SMSFs are not regulated by the financial authorities, so you will need to do your research to make sure you are investing in a reputable fund.

If you are considering an SMSF to invest in cryptocurrency, make sure you understand the risks and benefits before deciding.

The ATO has released guidance on how SMSF trustees should account for cryptocurrency assets. The guidance provides that crypto-assets should be treated as a collectable for SMSF purposes. Any gains or losses on the disposal of a crypto asset will be treated as a capital gain or loss.

The ATO has also said that crypto assets cannot be used to pay SMSF expenses other than data and software costs associated with acquiring or disposing of the crypto asset.

The ATO has clarified that they expect SMSF trustees to report their holdings in cryptocurrency. Cryptocurrency is a tricky asset class, and the ATO expects trustees to report their holdings. But who has time to keep track of all that when you’re already trying to keep track of your regular accounting?

While SMSFs are not currently subject to the exact reporting requirements as other types of investment funds, the ATO has indicated that this may change in the future. For SMSF trustees looking to invest in cryptocurrency, it is important to be aware of the potential accounting and tax implications. To discuss your specific situation, book a call with one of our SMSF specialists.