9 Best Crypto SMSFs (April 2024)

In this guide, we’ll break down the 9 best options for crypto SMSFs for Australian investors. We’ll also explain the reporting requirements and tax benefits for SMSFs!

CoinSpot SMSF

CoinSpot is one of the best options when it comes to a beginner-friendly SMSF. CoinSpot stands out for its user-friendly interface and its selection of over 380+ cryptocurrencies! 

• Based In: Australia
• Supported Cryptocurrencies: Over 380 
• Key Features: API for crypto portfolio trackers/financial advisors, 24/7 customer support 

CoinJar SMSF

CoinJar offers low fees, an easy-to-use interface, and customer service — making it a great choice for beginners and experienced investors alike! 

• Based In: Australia
• Supported Cryptocurrencies: Over 50
• Key Features: Low fees (0-0.1%) on CoinJar exchange, customer support available during business hours 

Kraken SMSF

Kraken is an American-based exchange well-known for its focus on security and regulatory compliance. Kraken is a good option if you’re looking for low fees and secure storage! 

• Based In: United States (compliant with Australian regulations)
• Supported Cryptocurrencies: Over 245
• Key Features: Low fees (0-0.4%) 

Swyftx SMSF

Swyftx is another popular exchange that offers SMSF services. Swyftx supports more than 300 cryptocurrencies and gives users access to a dedicated SMSF support team. 

• Based In: Australia
• Supported Cryptocurrencies: Over 300
• Key Features: Dedicated SMSF team, Roll over balance from pre-existing SMSF 

Cointree SMSF 

Cointree excels in providing an accessible platform with premium support, catering to both novice and experienced investors with its easy-to-use interface.

• Based In: Australia
• Supported Cryptocurrencies: Over 240
• Key Features: Low fees (as low as 0.5%), Customer support with 4 hour response time (within business hours) 

Independent Reserve SMSF

Independent Reserve is a beginner-friendly platform that offers low fees and world-class security measures. While Independent Reserve has a limited cryptocurrency selection, the platform does offer anytime customer support! 

• Based In: Australia
• Supported Cryptocurrencies: 30
• Key Features: Low fees (0.02-0.05%), 24/7 customer support

Digital Surge SMSF

Digital Surge SMSF provides fantastic features for SMSF investors — including premium live customer support, 0.5% fees on all transactions, and the ability to dollar-cost average your cryptocurrency buys. 

• Based In: Australia
• Supported Cryptocurrencies: Over 300
• Key Features: Low fees (0.5%), Premium live support, Advisor portal 

BTC Markets

BTC Markets is well-known for its easy-to-use platform and reliable customer service. However, the platform offers a relatively limited selection of cryptocurrencies! 

• Location: Australia
• Supported Cryptocurrencies: 30
• Key Features: Personalized service for large trades 

NGS Crypto

NGS Crypto offers a unique approach to SMSFs, focusing on rewards from crypto mining. The platform promises rewards between 6-16%. The platform even goes as far as to promise a refund in the case that crypto mining becomes unprofitable! 

• Location: Australia
• Key Features: Blockchain mining service, up to 16% PA returns
• Supported Cryptocurrencies: Bitcoin 

Can I hold crypto in an SMSF?

You are allowed to hold cryptocurrencies in an SMSF as long as you meet the following three requirements. 

• The crypto investment is allowed under the SMSF’s trust deed
• The crypto investment is in accordance with the fund’s investment strategy 
• Complies with regulations (cryptocurrency cannot account for 90% or more of value of the SMSF) 

In addition, your SMSF must be registered with the ATO and have an Australian Business Number (ABN). 

How do crypto SMSFs work? 

Before you get started with SMSFs, it’s important to understand how they work. SMSFs have two phases: the accumulation phase and the retirement phase. 

Accumulation phase: During the accumulation phase, you contribute to your SMSF. You cannot withdraw from your SMSF (unless you’re willing to pay large penalties). 

Retirement phase: During the retirement phase, you’ll be able to access your SMSF income in the form of a pension. This happens when you reach the ‘preservation age’. For those born after July 1st, 1964, the preservation age is 60. 

What are the types of pensions with a crypto SMSF? 

You'll encounter two primary pension types: the Transition to Retirement (TTR) pension and the Account-Based Pension. 

TTR Pension: This pension is designed for those who have reached their preservation age but are not yet ready to retire fully. This type of pension allows you to continue working while beginning to draw down on your superannuation. You can withdraw up to 10% of your SMSF assets annually, providing a steady income stream while still taking advantage of pension tax benefits. For individuals under 65, a 15% tax applies to capital gains and SMSF income, which transitions to tax-free status once you surpass the age of 65.

Account-Based Pension: Account based pensions allow you to receive a customizable monthly pension from your SMSF. This pension type is especially tax-efficient, as both the income from the SMSF and capital gains are tax-free! Account-based pensions are subject to a ‘transfer balance cap’ — the maximum amount that can be transferred from accumulation to retirement phase. Currently, the transfer balance cap is $1.7 billion. 

What are the tax advantages of an SMSF?

SMSFs offer several tax benefits that can be particularly advantageous for cryptocurrency investments:

• Concessional tax rate: All contributions made to an SMSF are subject to a 15% concessional tax. If your marginal tax rate is above this, this can be advantageous. 
• Capital gains tax discount: If the SMSF holds an asset like cryptocurrency for more than 12 months, it may be eligible for a one-third discount on capital gains tax upon the sale of the asset.
• Tax-free pension phase: Any income generated by the SMSF assets, including capital gains from the sale of cryptocurrencies, is tax-free after you reach ‘preservation age’ (may be 55-60 based on when you were born). 

What are the requirements for a crypto SMSF? 

Managing an SMSF can be complicated. Before diving in, it's important to understand your responsibilities. 

You’ll need to find an SMSF auditor and complete the following tasks each year: 

• Accurately valuing the assets within your SMSF
• Lodging tax returns for your SMSF
• Reporting transfer balance cap events
• Submitting transfer balance account reports
• Submit records for both the ATO and your auditor
• Informing the ATO of any updates to your SMSF
• Regularly verifying the registration status of your SMSF

Superannuation laws require the formulation and adherence to an investment strategy, which must be regularly evaluated. This strategy should outline your investment objectives and how you plan to achieve them. 

Your SMSF must also satisfy the sole purpose test to qualify for tax benefits. This essentially means that your fund should be used strictly for retirement rather than immediate financial advantages. Failing the sole purpose test can lead to civil and criminal repercussions, as well as losing your SMSF tax advantages!