Crypto SMSF tax requirements explained.

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If you are new to investing in crypto with your super via a Self-managed super fund, then you need to take the necessary steps to ensure your fund is compliant with ATO requirements. It is estimated that ATO will be delivering more than 400,00 letters warning the Australian cryptocurrency investors who use the cryptocurrency exchanges.…

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If you are new to investing in crypto with your super via a Self-managed super fund, then you need to take the necessary steps to ensure your fund is compliant with ATO requirements.

It is estimated that ATO will be delivering more than 400,00 letters warning the Australian cryptocurrency investors who use the cryptocurrency exchanges.

 

Does a Crypto SMSF need to pay Crypto Tax?

Yes, ATO considers cryptocurrencies to be an asset class that is subjected to capital gains and income tax.

Capital Gains Tax (CGT)

Capital gain taxation arises only when the cryptocurrency is sold, and a profit or loss is generated. This happens when the crypto is sold, traded for another cryptocurrency, gifted, or used for further purchase. Capital gain is the difference amount of the AUD value of the currency at the time of sale to the time when it was acquired. It is necessary to keep the records of all the capital gain events for the five years after the occurrence of the event. Below you can find a simple formula on capital gains.

Capital Gain equals a – b

a)   Value of currency at the time of sale

 minus

b)   Value of currency at the time of purchase

 

It is very important to note that complying SMSFs are entitled to a capital gains tax discount of one-third if the relevant asset has been owed for at least 12 months.

What Does the ATO Know About Crypto SMSF transactions?

The ATO has all the data and information of crypto transactions when the currency is bought, sold, or held with any Australian Designated Service Provider. These include all the Australian exchanges and wallets such as CoinSpot, Digital Surge, Zipmex etc who are common players in the Self-managed super fund for crypto space.

These crypto exchanges abide by the government law which mean that the ATO has access to all information provided by you while signing up for their services. Hence, they can easily identify all the transactions made by an individual and even send a warning letter.

 

Is It Necessary to Report the Capital Losses?

When the Self-managed super fund cryptocurrency is sold at loss, it is necessary to report them on the taxes. These losses can help to reduce the net capital gains tax for the year and the overall tax liability.

 

Lodging a SMSF Crypto tax return

Do you know how to lodge a tax return for your crypto SMSF? Well, if not here is what you need to get started with.
For accurate calculation of the tax return, you need three basic pieces of information,

  • Dates of every individual crypto transaction made
  • The market value of every asset both at the time of sale and at the time of purchase
  • Amount of every coin sold
  • The most common crypto exchanges in Australia for SMSFs have this information on hand as part of your account
 

Ways of Lodging a Crypto SMSF tax return.

There are different ways of lodging crypto taxes. This includes,

  • Crypto tax software: Making use of the tax software like CoinLedger helps to integrate the entire transaction history from the exchanges such as Coinspot in just a couple of minutes. All the necessary gains, losses, and income-related reports can be generated to be used for tax reporting purposes.
  • Tax software and accountant: Instead of taking the hardship of filling the taxes by yourself, one can send the gains, losses, and income report downloaded from the CoinLedger to a SMSF specialist accountant.

Using a specialist crypto SMSF accountant and auditor. A company like New Venture Wealth can manage all these requirements for you and can ensure your SMSF is audited and compliant with all ATO requirements. For more information see here for our tax time packages or contact us

Paul Altis

Co-Founder / Director - New Venture Wealth
For decades I’ve helped clients build, manage and protect their SMSFs with clarity and confidence. My approach is simple: listen first, explain clearly, and always act in your best interests. When you understand your options, you make better decisions — and that’s where long-term results really come from.
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New Venture Wealth are SMSF Specialists and Chartered accountants. We are not financial advisors, and no content on this website should be considered as financial advice. Monthly tax and compliance fees are based on tax and compliance services for SMSF assets. Our monthly tax and compliance fees may vary (we will provide 14 days’ written notice).

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