Want to invest superannuation in cryptocurrencies in a secure, legal and tax compliant manner ?





Currently the only way to invest super in bitcoin is using self managed superannuation (SMSF)

You can set up an SMSF using an accountant of your choice near you. I used Squirrel Super as their team demonstrated the ability to understand and audit cryptocurrency investments. So look for this skill set in the accountant of your choice.

Once your SMSF is setup you will get a bank account for it to which you will transfer funds from your existing industry superannuation account.

Then sign up with an australian bitcoin exchange with your SMSF company details to purchase bitcoin/ether using your SMSF's bank a/c. I prefer to use Independent Reserve as they have an Out of Box offering catering specifically to SMSF accounts which they built based on community feedback.

Please ensure you keep bitcoins/ether in a wallet you control once you have purchased them and also this wallet should be separate to your personal bitcoin wallet.

Ideally send all your SMSF purchased bitcoins/ether to a single address wallet so it is easier for annual audit purposes which SMSF's are required to do. Your accountant will do this for you.

I personally use Copay Wallet as it has an Auditable Setting feature for the wallet which allows you to have a single wallet address. While this may not be best practise for every day transactions with your personal bitcoin wallet , however in case of investing superannuation it actually is best practise in order to simplify audit.

If you sell the bitcoins ensure the funds go back into your smsf's bank account and you declare any profits or loss upon sale of your bitcoin/ether to your accountant for tax purposes. Any currencies acquired as a result of a fork of an existing cryptocurrency in your SMSF portfolio for eg. Bitcoin Cash(BCH), will also need to be declared for audit.

Just like all superannuation investments you cannot spend your SMSF owned cryptocurrencies for any personal use untill you are of a retirement age or meet the criterias under SMSF laws that allow you to do so.

As much as i would like to , I personally dont think it is a wise idea to invest superannuation in Monero,Dash,ZEC or anything which is privacy centric. We hopefully will be there someday when it is more accepting to do so, but at this stage if you want to invest in any privacy centric altcoins i think it would be best to do so with your own funds and not superannuation.

Anything that you cant purchase from an Australian exchange and have to use something like shapeshift or similar platforms for, That again be wary of as at audit time it will be a lot more complicated trying to establish the transactions and prove balances.

To learn more please send an email to contact@btcsuper.info