What You Need to Know Before Setting Up an SMSF to Buy Crypto in Australia

Yes, you can use a Self-Managed Super Fund (SMSF) to invest in cryptocurrency, but before you start, it’s worth understanding what’s involved. Setting up an SMSF is more than filling out a few forms; it’s about taking full control of your retirement savings and following ATO rules carefully.

Common Questions (and Straight Answers)

1. Is it legal for an SMSF to buy crypto?

Yes. The ATO allows SMSFs to invest in digital assets like Bitcoin or Ethereum, as long as it’s for genuine retirement purposes. Your SMSF must meet the Sole Purpose Test and keep crypto completely separate from personal funds.

2. What’s the process to set up an SMSF for crypto?

In simple terms:

1. Register your SMSF with the ATO.

2. Create a corporate trustee and open a bank account in the fund’s name.

3. Update your investment strategy to include cryptocurrency.

4. Open an SMSF account with a compliant Australian crypto exchange.

5. Purchase crypto in the fund’s name and store it securely (cold wallet preferred).

   
   

3. How much super do I need?

There’s no official minimum, but practically, an SMSF starts making sense with around $100,000+ in combined super. That’s because setup and annual compliance costs usually range between $2,000–$4,000 per year.

4. What are the benefits?

• Control over where your retirement money is invested.

• Potential exposure to crypto growth within a 15% tax environment.

• Ability to diversify beyond shares and property.

  
  

5. What are the risks?

• Crypto volatility: prices can swing 10–20% in a day.

• Administrative burden: detailed record-keeping and annual audits.

• ATO compliance: every wallet, transaction, and valuation must be documented.

  
  

6. Do I need an accountant or advisor?

While you can technically DIY, most trustees work with an SMSF accountant familiar with crypto to handle setup, audits, and ATO compliance. It saves headaches (and sometimes, expensive mistakes).

Key Takeaway

Setting up an SMSF to buy crypto gives you freedom and flexibility, but it also brings responsibility. It’s not about quick wins; it’s about building long-term wealth the right way.

If you’re curious about investing your super in crypto, you don’t have to figure it out alone. We're always happy to walk you through what’s involved: the rules, structure, and practical steps, so you can make an informed choice that fits your goals. Book a call with us, today!