Crypto SMSF Guide 2025: What to Know 

By Crypto News Australia February 04, 2025

Please note that Crypto News Australia is a subsidiary of Swyftx, and this article features Swyftx products or services.

Cryptocurrency’s growth through the current decade has been remarkable. 

From a speculative, unknown asset to a household name endorsed by presidents, legislators and trillion-dollar institutions, it’s no wonder Aussies are adding crypto to their retirement portfolios. 

According to Swyftx’s 2024 Australian crypto survey, almost one-third of Gen Zers in the nation own digital assets. Overall, nearly 4m Aussies held crypto in 2024. 

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Australia has some of the world’s highest rates of crypto adoption, but without many avenues for adding crypto to its super, crypto SMSFs are an attractive alternative.  

According to the Australian Tax Office (ATO), over AU $1 billion worth of crypto is held in SMSFs as of March 2024. 

So what are SMSFs, can they hold Bitcoin and other cryptos, and who can start one? 

What is a crypto SMSF? 

Technically, there’s no such thing. 

A Self-Managed Super Fund is a type of retirement plan that allows investors greater control over the assets in their superannuation. Rather than giving control over your retirement portfolio to a fund manager, SMSFs allow an individual (or group of up to six) to decide what they invest in. 

Due to this, SMSFs can comprise all types of assets – think fine wine, vintage cars, and of course, cryptocurrency.   

This does not mean you can set up an SMSF and rush out to buy a Dodge Charger you’ll drive around town. SMSFs have stringent requirements that must be adhered to.  

In particular, your retirement fund investments cannot be for the benefit of your current lifestyle. cannot be for the benefit of your current lifestyle. This is known as the sole purpose test. The primary function of an SMSF is to provide retirement benefits to its members.  

This is known as the sole purpose test. Additionally, every SMSF must have a clear and documented Investment Strategy. 

If potential investments for the SMSF do not align with this strategy, they cannot be made. 

What are the benefits of an SMSF? 

Managed funds, such as an industry or retail super fund, usually provide a relatively limited portfolio. For most Aussies, this will largely consist of stocks and bonds. 

In fact, according to APRA, over 3/4 of all assets held by industry super funds are allocated to equities and fixed-income products.   

As of 2024, over 1/4 (27%) of Aussies want some level of exposure to digital currencies in their retirement portfolios. However, with other forms of super largely locked into traditional assets, SMSFs are one of the few ways to achieve this exposure Down Under. 

Additionally, Self-Managed Super Funds can offer a concessional tax rate of 15%. 

Can my SMSF invest in Bitcoin and crypto? 

Yes, Self-Managed Super Funds can invest in Bitcoin, and other digital assets for that matter. 

That said, there are several requirements to consider when buying crypto for an SMSF. 

  • Crypto assets must be a supported investment under the fund’s trust deed. 
  • Crypto assets must ‘be in accordance with the fund’s investment strategy’. 
  • Operation of a separate, SMSF-dedicated trading account. 
  • Full and accurate record-keeping of all digital asset-related transactions. 
  • ‘SMSFs are prohibited from intentionally acquiring assets from related parties’. This means you cannot directly add crypto to your SMSF from someone you know.   

Non-compliance can result in significant financial penalties. You can find out more via the ATO’s website

An overview of investing in crypto assets with an SMSF 

Each platform will have different requirements to get started buying digital assets for your Self-Managed Super Fund. However, generally, the process will be similar. 

1. Ensure you have a compliant SMSF. Starting your individual or corporate SMSF can be difficult – when in doubt, consult a financial advisor. SMSFs must be approved by the ATO, among fulfilling other requirements, before individuals and groups can invest through them. 

2. Choose a trading platform. Once you’re sure the fund abides by all regulations, you can decide which crypto exchange or brokerage you’d like to use to purchase digital assets. There are several options for Australians, which we’ll cover in-depth below. 

3. Book a consultation. Some SMSF-supporting crypto trading platforms will require new clients to complete a consultation. 

4. Create an SMSF account. Investing through an SMSF requires a separate, dedicated account. To set one of these up, you will typically need to submit various SMSF documents. The trading platform you choose can likely assist you through this process. 

5. Invest in crypto. Once the account is approved and up and running, you can begin adding digital assets to your retirement portfolio (assuming all regulations are met). 

Best crypto SMSF platforms in Australia 

Several reputable and AUSTRAC-registered Aussie exchanges support SMSF accounts. Some of the best include: 

Swyftx 

Trading fees
0.1-0.6%
Cryptocurrencies
440+
Fiat currencies
3

About Swyftx

Swyftx is an Australian-based crypto exchange that launched in 2018. Founded by Alex Harper and Angus Goldman, the trading platform has seen massive growth over the last couple of years and has built a 700,000+ strong customer base. It’s considered a beginner-centric exchange due to its easy-to-navigate interface, great learning resources and features like demo mode. However, experienced investors can benefit from its features and competitive fees too.

Pros

  • Australian-based
  • Strong customer reviews
  • Great features for crypto trading
  • Easy to use
  • Well-optimised and sleek mobile app
  • Wide range of supported cryptocurrencies
  • Fully functional demo mode
  • ISO27001 certified
  • Supports SMSF accounts
  • Integrated tax reports
  • Tiered trade fees for high-volume traders

Cons

  • Fees are a bit high for day-traders, compared to international crypto trading platforms (like Binance or Bybit)
  • No advanced trading options like derivatives

Exchange details

Trading fees:

0.1-0.6%

Deposit fees:

Bank transfer: Free
PayID: Free
Credit card: 1.99%

Withdrawal fees:

Free

Cryptocurrencies:

440+

Headquarters:

Brisbane, Australia

Fiat currencies:

3

Australian based customer support:

Demo mode:

Full learn platform:

SMSF holders can create an SMSF account (called an entity account) through the Australian exchange Swyftx. The company offers a dedicated, 24/7 support team, the ability to trade over 440 crypto assets and access to detailed transaction reports. 

Independent Reserve 

Trading fees
0.02-0.5%
Cryptocurrencies
30
Fiat currencies
4

Independent Reserve is a long-standing exchange that has cemented itself in the Australian crypto industry. The company was founded in 2013 by Adam Tepper and Adrian Przelozny as part of the first-wave of Australian crypto platforms. The exchange only supports a handful of digital currencies, but balances this with strong customer support and advanced trading options.

Pros

  • Insurance fund in case of hack or lost customer funds
  • Good fee structure for high-volume traders
  • Integration with PayPal
  • Unlimited daily deposit limit
  • ISO 27001 certification
  • Support for SMSF accounts

Cons

  • Base trading fee is a little high for an intermediate/advanced exchange
  • Supports much fewer digital currencies than competitors
  • Fees for AUD deposits under $100

Trading fees:

0.02-0.5%

Deposit fees:

Bank transfer: Free for deposits of $100+
$0.99 charge for deposits under $100
Debit and credit cards: 1%
PayPal: 1%

Withdrawal fees:

Bank transfer: Free
PayID/Osko/Instant withdrawal: $1.50

Cryptocurrencies:

30

Headquarters:

Sydney

Fiat currencies:

4

Australian based customer support:

Demo mode:

Full learn platform:

The Sydney-based trading platform Independent Reserve has supported SMSFs investing in crypto for over a decade. They offer detailed reporting and 24/7 customer service for their SMSF customers. 

CoinJar 

Trading fees
1% instant spot orders
2% Instant Buy (via card)
0.1% exchange orders
Cryptocurrencies
60+
Fiat currencies
4

CoinJar is Australia’s longest-running crypto exchange, with the platform bursting onto the scene over a decade ago in 2013. The team has helped over 600,000 Australians begin building their crypto portfolios with all the basics – Bitcoin, Ethereum and Litecoin. The platform is AUSTRAC registered and adheres to all regulatory requirements. In its years operating in Australia, CoinJar has built a reputation as a trustworthy and secure exchange perfect for beginners and intermediate investors.

Pros

  • Offers a debit card that allows Australians to pay with crypto at participating merchants
  • The CoinJar Exchange fees are quite low
  • 90%+ of customer assets held in cold storage
  • Long history and reputation of security and trustworthiness
  • Advanced traders can use multiple fiat currencies (AUD, USD, EUR and GBP)

Cons

  • Relatively small list of tradeable cryptocurrencies
  • Light on features
  • Spot trading fees (1%) are a little high
  • Customer service can be a little slow

Exchange details

Trading fees:

1% instant spot orders
2% Instant Buy (via card)
0.1% exchange orders

Deposit fees:

PayID: Free
Bank transfer: Free
SEPA deposit: Free

Withdrawal fees:

Free

Cryptocurrencies:

60+

Headquarters:

Melbourne

Fiat currencies:

4

Australian based customer support:

Demo mode:

Full learn platform:

CoinJar is one of Australia’s longest-standing crypto exchanges and has developed a reputation for excellent customer support. The platform offers investors the ability to purchase over 60 digital assets through their Self-Managed Super Funds. 

CoinSpot 

Trading fees
1% for instant buy and sell orders
Cryptocurrencies
460+
Fiat currencies
1

CoinSpot is Australia’s biggest exchange with over 2.5 million users nationwide. Founded in 2013, CoinSpot is also one of Australia’s oldest and most established exchanges. Similar to Swyftx, the platform takes a beginner-friendly approach with its sleek interface and simple navigation.

Pros

  • User-friendly interface
  • Lists 400+ cryptocurrencies for trading
  • Features an NFT market
  • Strong, local customer support
  • Low fees on market trades (0.1%)

Cons

  • High fees for instant buy and sell orders
  • No demo mode
  • High spreads
  • Lack of learning resources

Exchange details

Trading fees:

1% for instant buy and sell orders

Deposit fees:

Bank transfer, PayID: None
PayPal: 0.5%
Cash: 2.5%
Card: 1.88%

Withdrawal fees:

$0 on AUD withdrawals
2% on PayPal withdrawals

Cryptocurrencies:

460+

Headquarters:

Melbourne, Australia

Fiat currencies:

1

Demo mode:

Full learn platform:

CoinSpot is one of Australia’s most popular cryptocurrency exchanges and offers investors a large range of digital assets to invest in via their SMSF. The team also supports an portfolio tracker API for accountants.   

Kraken 

Trading fees
starts at 0.4%
Cryptocurrencies
290+

Kraken is a popular cryptocurrency exchange founded in the United States over a decade ago in 2011. The platform has since expanded globally, setting foot into Australia to offer residents the ability to trade hundreds of digital assets with AUD.

Pros

  • Supports trading over 200 cryptocurrencies
  • ISO27001 certification
  • AUSTRAC-registered
  • Supports SMSF accounts

Cons

  • Trading fees can be a little higher than some international competitors
  • Not a huge range of AUD trading pairs

Trading fees:

starts at 0.4%

Cryptocurrencies:

290+

Demo mode:

For derivatives only

Full learn platform:

Kraken Australia is one of the very few internationally-based crypto exchanges to support SMSFs. The company has branched Down Under in recent years and is AUSTRAC-registered.  

What to consider when choosing an SMSF crypto exchange 

There are many factors to think about when choosing a crypto trading platform for your SMSF. 

  • Security: Keeping your retirement savings safe and sound is incredibly important. Choosing a trading platform with a strong security history and reputation is vital. ISO 27001 Certification is the industry standard for information security and is something several Australian exchanges have achieved. 
  • Fees: Trading fees can significantly impact potential profits (and losses) from an SMSF investment strategy. This can be especially true when using large sums of money as is common with Self-Managed Super Funds.  
  • Listed assets: If a particular digital currency aligns with your SMSF’s investment vision, it’s worthwhile ensuring the trading platform supports trading and custody of this asset.   
  • Customer support: SMSFs can be complicated at the best of times. Having a dedicated customer support team – especially one based in Australia – may prove useful in addressing potential questions or issues. 

How to set up a crypto SMSF Australia 

Setting up an SMSF to invest in crypto assets can be rather difficult. 

It requires filling out several documents, such as an official Investment Strategy and trust deed. Beyond this, SMSFs must also receive approval from the Australian Taxation Office, manage the transferral of existing super into the new fund and create separate trading and bank accounts, among other responsibilities. Compliance with the Superannuation Industry (Supervision) Act is also crucial. 

Additionally, ongoing management of an SMSF requires keeping detailed transaction records, filing taxes and certain costs. 

Due to the complexity of operating a Self-Managed Super Fund, several services exist in Australia to help investors with SMSF compliance and accounting. 

Note that these platforms cannot invest on your behalf – that’s where the crypto trading platforms come into play. 

SMSF Specialists in Australia 

Tax on Chain 

Tax on Chain is a crypto-centric accounting firm led by director and Chartered Accountant Oliver Woodbridge. The company focuses on all things crypto for businesses and individuals, providing solutions for blockchain-specific events like yield farming, airdrops and NFT collections. The team can also help Aussies set up and manage an SMSF, putting you in direct contact with one of Tax on Chain’s crypto accountants. 

Costs:  

  • Establishment costs: $2,420 
  • Accounting costs: $1,600 
  • Annual audit fee: $500 

Services: 

  • Crypto SMSF set up 
  • Tax solutions for businesses and individuals 
  • Annual audits and tax returns 
  • Technical support 

Cryptocate 

Cryptocate has been connecting Australian crypto investors with accountants since 2017. The company offers tax support for crypto users of all kinds – whether you’re a high-frequency professional institution, individual or an advanced trader looking for help with an SMSF. Cryptocate is more of an add-on than an all-in-one package – you will still need an accountant to file the official SMSF documents. However, the team can ensure compliance for sophisticated crypto investment strategies. 

Costs: 

  • Starter: from $1,200 
  • Professional: from $2,200 

Services: 

  • Tax reporting for businesses, individuals and SMSFs 
  • Up to 11 hours of tax and technical support for professionals 
  • Data verification and transaction categorisation  
  • DeFi activity compliance  

GrowSMSF 

GrowSMSF is a Queensland-based company supporting SMSF users of all kinds – including those who wish to invest in digital assets. The team offers comprehensive assistance for all stages of an SMSF, including setting one up or managing an existing fund. 

Costs: 

  • Setup: $1,395 
  • Crypto Starter: $1,430 per annum 
  • Crypto Flexi: $1,730 per annum 

Services: 

  • Paperless, digital SMSF creation 
  • Dedicated bank account 
  • Support for external crypto wallets ($220 per year) 
  • Independent audit 
  • Phone, email and chat support 

Capital gains tax characteristics of an SMSF 

Self-Managed Super Funds are treated similarly to other superannuation funds when it comes to tax. 

Capital Gains within an SMSF can be eligible for a concessional 15% tax rate. This can be quite a bit lower than traditional CGT rates, which are as high as 45%. 

Additionally, SMSF assets held for over a year before disposal may be eligible for a further 33% discount – bringing the tax rate on capital gains to 10%. 

It’s worth noting that these concessional rates are only available to compliant super funds. Breaching any of the regulations may result in paying nominal tax rates, as well as other potential financial penalties.  

Downsides of an SMSF 

Self-Managed Super Funds can offer several advantages for Australian investors seeking to add crypto to their retirement funds. However, they are not without their downsides. 

  • Associated costs: SMSFs can have a lot of additional costs to consider compared to regular superannuation. This will vary depending on the individual/corporate trustee, but can include expenses like accounting, auditing, taxes and setup fees.  
  • Compliance. There are many boxes that you need to tick when managing an SMSF. Help from third-party experts can stop some things from falling through the cracks, but maintaining constant compliance is the fund’s responsibility.  
  • Complexity. SMSFs tend to offer more flexibility than traditional super funds, but this comes at the cost of simplicity. There are a lot of ins and outs to be aware of when operating an SMSF, which can be difficult to manage.  

Where can I hold my SMSF’s crypto? 

Custody of the crypto within a Self-Managed Super Fund is of utmost importance – this is how you keep your assets secure. 

In general, Australian crypto trading platforms will offer ‘exchange wallets’ for supported cryptocurrencies. In these circumstances, you are handing over custody of your digital assets to a third party. This is why choosing an exchange with an excellent track record for security is vital, because you may lose your retirement portfolio in the event of a hack. 

Some SMSF specialists will work exclusively with certain exchanges to manage the storage of your digital assets. 

Cryptocurrencies can also be stored in a ‘cold’, or hardware wallet, so long as the device is only storing funds owned by the SMSF. 

Hardware wallets are often considered the top line of defence against hacks and are a potential storage solution for crypto investments made via an SMSF. 

FAQs 

Can you buy Bitcoin in an SMSF’s investment strategy? 

Yes, you can buy Bitcoin through a Self-Managed Super Fund. However, the SMSF must be compliant with relevant regulations, and the fund’s specific Investment Strategy and Trust Deed must allow purchasing BTC. 

Can I start an SMSF with $100,000? 

There is no minimum requirement for opening and running an SMSF in Australia. However, this is something that should be consulted carefully with a financial expert. 

Which crypto exchange is best for SMSF Australia? 

Australia is home to several well-regarded digital asset exchanges and brokerages that support SMSF (or entity) accounts. There is no such thing as a single ‘best’ exchange – rather, each individual should consider their own preferences when landing on a platform. 

Is it worth setting up a self-managed super fund to invest in crypto? 

This depends entirely on the individual – when in doubt, seek professional advice. SMSFs may prove to be a suitable vehicle for adding digital assets to a retirement portfolio. 

Can I buy cryptocurrencies other than Bitcoin with my SMSF? 

Yes, SMSFs can purchase a wide range of digital assets, as long as it aligns with the fund’s investment strategy, trust deed and all members (if multiple) agree on the investment. 

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