Author
Nick Christie
Co-Founder
Brisbane, Australia
Reviewed by
Kova Tax
Registered Tax Agent
25963822
Using a crypto SMSF might just be the most tax effective way to save for retirement in Australia.
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Last updated
22
Jun
2025

What is an SMSF

A Self-Managed Super Fund (SMSF) is a special entity that allows Australians to directly manage and invest their superannuation, instead of using an industry or retail super fund. This control gives you the freedom to invest in a broader range of assets, including digital assets like Bitcoin and Ethereum, which traditional super funds don’t offer.

In practice, an SMSF is currently the only way for Australian’s to get direct exposure to cryptocurrency through their superannuation.

💡 Tax Insight
The ATO statistics for the March 2025 quarter show there is now approximately $1.675 billion in crypto assets held by Australian SMSFs. That represents a significant increase from the $137 million invested in crypto assets back in June 2020.

Why invest in crypto through an SMSF

There's two main reasons that we typically see SMSFs being established.

Tax savings - Investment income inside an SMSF is taxed at just 15%, with long-term capital gains effectively taxed at 10%. Once in retirement phase, earnings can become tax-free.

Control – You are not limited to following the broad allocation strategies dictated by an industry or retail fund. Instead, you can choose to invest as you see fit, including in crypto investments.

Can an SMSF invest in cryptocurrency

Yes, investing in crypto through an SMSF is perfectly legal, however, it does require careful consideration of both the superannuation laws and your compliance obligations.

To invest in crypto through an SMSF, you must ensure:

  • You comply with all standard super laws contained in the Superannuation Industry (Supervision) Act 1993 (SIS Act) and the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations).
  • The SMSF is registered with the ATO and has a valid Australian Business Number (ABN) and Tax File Number (TFN).
  • The trust deed must also allow investments in crypto.
  • Your investment strategy must document the decision to investment in crypto.

Failure to comply with these regulations can result in penalties or fines.

How much does it cost to setup an SMSF

Setting up an SMSF is not free – and running it year to year comes with ongoing costs. It’s important to weigh these costs against the potential benefits (like tax savings) to determine if a crypto SMSF is financially worthwhile for you.

The costs can vary significantly depending on whether you use a low-cost online provider or a full-service accountant.

Establishment costs

SMSF Setup, Administration, and Costs
Item Details Cost
Financial advice (Optional) Financial Advice on the appropriateness of establishing an SMSF. $2,000+
SMSF establishment SMSF setup packages (including trust deed). $500 – $1,800
Corporate trustee (Optional) Using a corporate trustee adds to the setup cost. The fee to prepare and register the company varies depending on your provider. $400 - $800
ASIC company setup fee (Optional) Using a corporate trustee incurs an ASIC company registration fee. $597

Ongoing costs

Recurring fees for an SMSF
Item Details Cost
Ongoing administration and annual compliance Annual costs for accounting, financials and tax lodgement. $1,500 – $3,000+ per year
SMSF audit Annual compulsory SMSF audit. $330 - $550 per year
ATO Supervisory Levy Annual supervisory levy charged by the ATO to all SMSFs. $259 per year
ASIC fees (Optional) Annual ASIC renewal fee for the Corporate Trustee company. $65 per year

One-off costs

One-off costs which can sometimes be inccurred
Item Details Cost
LRBA (Optional) Fees related to a Limited Recourse Borrowing Arrangement (LRBA), if the SMSF takes on debt to purchase assets. $2,500+
Tax advice (Optional) Fees for tax advice, structuring, or ongoing tax planning — these vary depending on the complexity and advisor. $440 - $700 per hour

Although some providers market an SMSF similar to an off the shelf product, it’s fundamentally a bit more complicated than that. There can be unexpected costs if you’re not careful with how you operate the SMSF, if you undertake complicated investments or if you breach regulations.

It’s recommended that you always discuss your intended activity with your accountant, so they can give you a realistic estimate on the cost to establish and complete the annual compliance each year. This will give you a much better understanding of what’s involved.

If you don’t already have an SMSF, then there are two ways that you might consider setting one up:

Low-cost wholesale option

If your main decision factor is cost, then you’ll probably want to look at using an online SMSF provider. These budget-friendly options are able to drive down costs, primarily through the use of offshore staff and by limiting the time spent on your SMSF compliance.

In some cases it can be hard to maintain a high standard of quality, so make sure you find a good provider that you’re happy with. You’ll also need to be careful what crypto investments you make, to ensure your activity is relatively simple, so your provider can get the compliance sorted.

Wholesale SMSF providers generally cost around $500 to setup an SMSF and around $1,500 per year in annual compliance fees, along with the $259 ATO Supervisory Levy.

Australian accountants

Engaging an accounting firm for your SMSF may come at a higher cost, but it's often worth it for the higher quality and lower risk. Additionally, you'll have someone local that you can speak with.

A local accounting firm will tend to have more experienced tax professionals, who understand superannuation laws and can also assist with your tax planning. If you use the same accountant to also do your individual or business tax, then they can advise on more holistic tax savings strategies.

The average costs when using an Australian accountant to help with your SMSF are $2,000 for initial setup and from $2,500 - $3,500 per year for annual compliance.

The costs do increase as the size or complexity of the fund increases, so make sure to discuss any major changes with your Accountant to estimate your costs.

How to purchase crypto in an SMSF

Setting up a crypto SMSF can be a complex process, but with the right guidance, it can be done. We’ll go through the key SMSF considerations for investors who wish to setup an SMSF to purchase crypto.

1. The trust deed must permit crypto

Confirm that your SMSF’s trust deed allows for investment in cryptocurrency. Most modern trust deeds are broad enough to permit crypto. Fortunately, most SMSF trust deeds are written broadly enough to allow trustees to invest in crypto, but you’ll still need to check the following:

  • The trust deed should clearly state the sole purpose of the SMSF (which is to provide for the retirement benefits of its members).
  • The trust deed should specify who the trustees of the SMSF are and the powers they have. The trustees must be appointed in accordance with the SIS Act and SIS Regulations, and they must act in the best interests of the members of the SMSF.
  • All trustees and directors must consent in writing and sign a separate Trustee declaration stating they understand their responsibilities within 21 days of becoming a trustee or director.
  • The trust deed should specify who the members of the SMSF are, and how new members can be added. It should also specify the rights and obligations of the members.
  • The trust deed must allow for investments in cryptocurrency, this could be specifically stated, or allowed for under a more general clause.

2. Register your SMSF

To legally operate, an SMSF must be formally established and registered with the ATO, and if you use a corporate trustee then you’ll also need to register with ASIC.

You and your fund members will have a lot of documents to sign and it’s important that you spend the time to do this correctly. The Trust Deed must be physically signed by hand, to ensure it’s been correctly executed and to remove any doubt that the SMSF has been legally established.

Once your superfund is established and all trustees have been appointed (including signing the Trustee declaration), you will then have to register your SMSF with the ATO by applying for an ABN within 60 days.

When completing the ABN application, you should:

  • apply for a TFN for your SMSF
  • elect for your fund to be an ATO-regulated SMSF.

If you don’t elect for your fund to be an ATO-regulated SMSF, your fund won’t get tax concessions and the members won’t be able to claim deductions for contributions.

You will also need to appoint an approved SMSF auditor to audit your superfund. This must be done no later than 45 days before you need to lodge your annual return for your SMSF.

Your SMSF auditor must be registered with ASIC and be independent (i.e. hold no financial interest or personal interest with members or trustees). You can search for an SMSF auditor on the ASIC website - SMSF auditor register.

There’s a lot that can go wrong here, so your accountant will help you through each step and ensure that everything is established correctly.

3. Crypto must be in your SMSF investment strategy

Every SMSF is legally required to have a written investment strategy, which outlines the fund’s investment objectives and plans for managing them.

The investment strategy must be consistent with the SMSF's investment objectives and risk profile. The investment objectives should be documented and clearly stated in the investment strategy, and should explicitly include crypto as an asset.

Crypto is a relatively new and volatile asset class compared to traditional investments, and investing in it carries significant risks. It is therefore important to clearly justify why crypto is a suitable investment for each member of the SMSF and how it addresses their investing preferences and risk profiles.

The investment strategy must be reviewed at least once per year and updated as necessary.

4. Set up your SMSF bank account

You will need to open a bank account in your SMSF’s name to manage the fund’s operations, and accept contributions, rollovers of super and income from investments.

It’s important to choose a reputable bank that allows establishing a bank account correctly for SMSF entities.

Having a separate bank account for the SMSF ensures that the money that belongs to the SMSF is held separate from the accounts of the members.

Read our article on Crypto-friendly banks for some recommendations.

5. Rollover superannuation to SMSF

Once your SMSF bank account is established, the next step is to rollover the super from your industry or retail fund to your SMSF.

You can initiate a rollover from your retail or industry superfund by completing a “Request for rollover of whole balance of super benefits between funds”, available here. Most industry and retail funds will also have an equivalent form, that is simpler to process in practice and will speed things up.

For transfers to SMSFs, your fund will need to use SuperStream to roll over your benefits for which a electronic service address is required, an ABN and SMSF bank account details.

6. Select an Australian crypto exchange or broker

Not all exchanges are created equal when it comes to SMSF support. Many are designed for individual investors and may lack the documentation, account structure, or reporting standards required for SMSF compliance. Using the wrong platform can result in unnecessary audit issues or even a breach of SMSF regulations.

When selecting a digital currency exchange for your SMSF, look for these key requirements:

Exchange requirements for an SMSF
Requirement Why it matters
AUSTRAC registered Exchanges must be AUSTRAC registered to legally operate in Australia. This also ensures compliance with AML/CTF obligations.
SMSF account type A dedicated SMSF account type is required to confirm the assets are held by the SMSF and the sole purpose test is not being breached.
30 June statements Essential for the annual audit. These statements must show portfolio balances and valuations as at 30 June. Platforms that provide audited statements offer added assurance to SMSF auditors.
Transaction reporting A complete transaction history is required for tax reporting. Platforms with a API sync or automated data feeds can significantly reduce year-end admin work.
Australian-based Not mandatory, but Australian exchanges typically have a stronger understanding of SMSF rules — leading to smoother onboarding and better compliance support.

It’s critical that you register the account as an SMSF (not as an individual). Most exchanges will required ID documents, a signed copy of your executed trust deed, and company details if using a corporate trustee. Once your account is verified, you can fund it from your SMSF bank account and begin investing.

Best crypto exchanges for SMSF

At Syla, we work closely with both SMSF trustees and accountants across Australia. Having supported hundreds of SMSFs with crypto tax reporting, we’ve seen firsthand which exchanges meet the necessary compliance standards, and which ones make year-end reporting easier.

These exchanges consistently meet all SMSF requirements and offer direct integration with Syla and other reporting software, making for a seamless annual compliance experience:

  • Coinstash
  • BTC Markets
  • CoinSpot
  • CoinJar
  • Digital Surge
  • Wealth99

The following platforms also meet SMSF requirements but do not currently offer an API sync. You'll need to manually export your transaction history each year:

  • Stormrake
  • Wayex
  • HardBlock

If your exchange isn’t listed above, it may still be suitable. Just ensure it meets the SMSF requirements listed earlier, such as providing 30 June statements, complete transaction reporting, and SMSF-specific account setup.

Look out for deals

SMSFs often invest larger amounts, making them valuable clients for Australian crypto exchanges. At Syla, we’ve partnered with many of Australia’s leading platforms to help simplify SMSF reporting. One of those partners, Coinstash, is currently offering a sign-up bonus that’s well worth checking out.

🔶 Get a $100 bonus

Coinstash currently offers a $100 bonus for new SMSF accounts. They’re the only platform providing audited annual statements for SMSFs, and their direct banking arrangement with In1bank removes the risk of blocked transfers.

👉 Get started with Coinstash.

Applies to new SMSF accounts only.

7. Using a wallet for your SMSF

Depending on the security preference of your SMSF, you may choose to either store crypto on the digital currency exchange or an external hardware wallet.

The fund must be able to provide evidence of a distinct crypto wallet for the SMSF. When purchasing a hardware wallet, you must make sure the purchase is invoiced to the SMSF. Keep a copy of the tax invoice as substantiation, for the SMSF audit.

Make sure you only use the wallet for storing assets that belong to the SMSF. Never store SMSF assets and personal assets in the same wallet.

How crypto is taxed in an SMSF

One of the strongest appeals of a crypto SMSF is the tax treatment. In an SMSF, all investment income (including crypto gains) are taxed at a flat 15% rate, and if the asset was held for over a year, the capital gain receives a one-third discount (effectively bringing the tax rate down to 10% for those gains).

Key compliance rules for SMSF crypto investing

Operating a crypto SMSF comes with strict compliance requirements under superannuation law (SIS Act and ATO regulations). Key rules to keep in mind include:

  • Separation of assets: Crypto assets held by the SMSF must never be mixed with personal crypto holdings. This is why it's very important to always use separate exchange accounts registered specifically for the SMSF, and a separate wallet only used for the SMSF.
  • Record keeping: Keep accurate and complete records of your entire transaction history including deposits, withdrawals, trades and any other events. These records are required for your annual accounting and tax reporting.
  • Annual audit: Each year your SMSF will undergo an external audit. You will normally be required to provide end of year holding statements for each exchange and wallet, to satisfy the auditor of the quantity and value of crypto assets held.
  • No related-party transfers: An SMSF cannot acquired assets from a related party (including yourself). One implication of this being that you can not transfer crypto directly into the SMSF from your personal account. Instead, it must be first sold to AUD, contributed into the SMSF, and finally the SMSF can purchase crypto using the funds.

Consult with your accounting professional

It is advisable to consult with your accounting professional regularly to ensure you’re keeping up with all compliance responsibilities for your SMSF.

Before making any large changes in your investment activity, it’s best to discuss with your accountant. With crypto, it’s very easy to end up in a situation where you have inadvertently breached superannuation law, or drastically increased the costs of your annual compliance.

What records do you need to keep

Because SMSFs are highly regulated, comprehensive record-keeping is non-negotiable. You’ll need to track every crypto buy, sell, swap, deposit, withdrawal, and the corresponding value in AUD, along with dates and which wallet or account was involved. Maintaining a detailed portfolio history manually can be overwhelming – especially if you trade frequently or use multiple exchanges.

Fortunately, there are tools to help. Crypto tax software tailored for Australia can automate much of the tracking and reporting. In fact, the only tax software built specifically for Australian SMSFs is Syla.

Syla’s platform is designed by Australian tax professionals to handle SMSF compliance – it can connect to exchanges via API or CSV, automatically record all transactions, calculate capital gains, income, and asset valuations in AUD, and generate ATO-compliant reports for your SMSF.

You or your accountant can use these reports at tax time to greatly simplify the lodgement process. Using such software not only saves time but also reduces the chance of human error in your record-keeping. Many SMSF accountants use software like BGL for administration; Syla can sync your crypto data directly into these systems, making the year-end compliance smoother

Getting your SMSF taxes done

Your accountant will assist you to get your SMSF compliance sorted, but you can definitely help and save a lot on fees by doing so.

To lower the administration costs, make sure you are using Syla to record all of your transactions and to prepare an ATO compliant Crypto Tax Report. This is important for your accountant and the external auditor. You can also let your accountant know that Syla supports a direct data sync into their SMSF administration software when they use BGL.

FAQ

How many SMSF’s exist in Australia?

There are 646,168 SMSFs registered in Australia based on data from SMSF quarterly statistical report March 2025, by the Australian Taxation Office.

How often does an SMSF need to be audited

SMSFs in Australia need to be audited annually every year. This is a legal requirement and there are penalties for non-compliance.

References

Superannuation Industry (Supervision) Act 1993.

Superannuation Industry (Supervision) Regulations 1994.

Australian Government, ATO, Self Managed Superannuation Funds, SMSF quarterly statistical reports, last accessed 22 June 2025.

Australian Taxation Office, SMSF investing in crypto assets, last updated 29 June 2022.

Australian Taxation Office, SMSF - Setting up, last updated 3 March 2022.

Australian Taxation Office, Create a trust and trust deed, last updated 16 February 2018.

Australian Taxation Office, Appoint your trustees or directors, last updated 17 February 2023.

Australian Taxation Office, Trustee declaration, last updated 18 August 2020.

Australian Taxation Office, Register your fund and get an ABN, last updated 12 December 2022.

Australian Taxation Office, Appoint an SMSF auditor, last updated 16 February 2021.

ASIC, Search SMSF Auditor register, last accessed 17 February 2023.

Australian Taxation Office, Set up a bank account, last updated 27 June 2022.

Australian Taxation Office, Request for rollover of whole balance of super benefits between funds, last updated 28 April 2021.

Australian Taxation Office, Value the fund’s assets, last updated 11 March 2021.

Australian Taxation Office, SMSF, Tax on income, last updated 16 June 2015.

Australian Taxation Office, SMSF, Capital gains, last updated 25 January 2019.

Disclaimer

The information in this article reflects our understanding of existing legislation, proposed legislation, rulings and other tax law, as at the date of issue. In some cases, the information has been provided to us by third parties. While it is believed the information is accurate and reliable, this is not guaranteed in any way.

The information provided in this article is purely factual in nature and does not constitute tax advice, financial product advice or legal advice. The information is not, nor is it intended to be, comprehensive or a substitute for professional advice on specific circumstances. If you require professional advice that takes into account your particular circumstances, you should consult an appropriate professional.