It’s important to understand that for an SMSF to invest in cryptocurrency, the wallet address associated with the holdings must be in the name of the SMSF. Non-Australian crypto exchanges such as Binance, Coinbase, Kraken etc DO NOT SUPPORT SMSF ACCOUNTS which makes it impossible to register an SMSF account with these exchanges and still meet the strict compliance rules self-managed super fund must comply with. Therefore, Grow supports the following popular Australian-based exchanges that support SMSF accounts and have adequate reporting that will satisfy our independent auditors and the ATO:

• Digital Surge
• Swyftx

This list may expand overtime. If you have an enquiry about a different crypto exchange, please contact us. Please note some links may include affiliate codes that pay a small commission to Grow SMSF or a related party.

There are a number of differences if you were to compare Grow SMSF to many of the low cost online only service providers available.  We recommend anyone comparing SMSF service providers look at the following as part of their research:

1. Service: We provide personalised phone and email support.  You are not forced to make all communication via an online portal. Our phone number (1300 651 263) is readily available during business hours (AEST). Check to see whether other providers have a phone number you can call to speak to a human.
2. Transparency: Grow receives revenue from the fees you pay. Where we receive referral commissions from account providers we will disclose it – but we do not use the revenue to to subsidise our business model. Some other SMSF service providers receive commissions which increase the ongoing costs of using their preferred suppliers.  Check the Product Disclosure Statement (PDS) of those providers to see how much they receive in commissions.
3. Work Required from you: Some providers are not ‘full service’ SMSF administration providers – they could better be described as an online accounting system with an SMSF audit and lodgement function attached.  Grow SMSF does not require you to categorise or code any of your SMSF transactions yourself.

The above is not a comprehensive list. Take a look at our blog to find more specific information on comparing Grow SMSF to other service providers.

Yes.

One of the most fundamental principles of a self-managed super fund is separation of assets. A separate cryptocurrency exchange account is needed in the name of the SMSF.

Separation of assets means that assets, accounts and investments of an SMSF must be in the name of the trustee of the fund on behalf of the SMSF and cannot be mixed or intertwined with assets and investments of the members / trustees of the fund. If a trustee fails to keep assets of an SMSF separate the breach of the regulations must be reported to the ATO by the independent auditor of the fund.  The trustee(s) could be personally fined or in extreme cases the ATO may deem the fund non-complying.

The following is direct form the ATO who regulate SMSFs and enforce the rules when it comes to diversification:

“While a trustee can choose to invest all their retirement savings in one asset or asset class, certain risks such as return, volatility and liquidity risks can be minimised if a trustee chooses to invest in a variety of assets. This is called a diversified portfolio which helps to spread investment risk.”

Regardless of what you think about cryptocurrency as an investment, it is a very new and emerging asset class that has high level of volatility. With Grow, we support not just crypto investments, but also ASX shares and ETFs as well as US stocks and ETFs.  This enables SMSF trustees to put together a well-diversified investment portfolio and ensure they meet the diversification requirements. Can an SMSF be invested 100% in cryptocurrency assets? No one can stop an SMSF trustee from investing a large portion of the funds portfolio into crypto, however the onus is on them to validate why the lack of diversification (and the high level of risk) is appropriate for their fund.

The set up fees for a new SMSF are as follows:

• $495 with individual trustees;
• $990 with a company trustee

Grow SMSF intentionally DOES NOT offer ‘FREE’ SMSF establishment to ensure we provide you with the best possible upfront support and service you deserve.

There is no need to use any 3rd-party tools to separately track your SMSF portfolio or crypto investments held by your SMSF. Incorporated into our SMSF solution is detailed investment and capital gains tax (CGT) reporting. You just need to download the relevant reports at the end of each financial year and provide them to us.

No. Grow SMSF does not hold an Australian Financial Services Licence (AFSL) or is not an authorised representative of an AFSL holder. The advice and support we provide to our clients is limited to either taxation or the compliance of your self-managed super fund under the relevant laws and regulations.

Grow SMSF is not a financial adviser. We do not issue advice, recommendations or opinion in relation to acquiring, holding or disposing of investments or superannuation interests.

Any information contained within this website is provided as an information service only and, therefore, does not constitute, and should not be relied upon as, financial product advice. None of the information provided takes into account your personal objectives, financial situation or needs, and you will need to make your own decision about how to proceed.

Alternatively, for financial product advice that takes account of your particular objectives, financial situation or needs, you should consider seeking financial advice from an Australian Financial Services licensee before making a financial decision.

Great question.  There is a lot to learn before setting up an SMSF to invest in cryptocurrency. We recommend reading the following article: Cryptocurrency SMSF investments and Bitcoin