How Crypto Fits Into Your SMSF (and the rules you can’t ignore)

If you’re into crypto, chances are you like the idea of freedom, control, and the chance to grow your wealth outside the usual system. So, can you bring that mindset into your super? The short answer: yes. The ATO allows cryptocurrency to be part of a self managed super fund (SMSF) portfolio. But – and it’s a big one – there are strict rules around how it’s done.

Crypto in an SMSF isn’t about day trading on your phone or sending tokens to your mate’s wallet. It’s about treating digital assets like any other investment in your fund: separate from your personal holdings, recorded properly, and aligned with your long-term retirement strategy.

Crypto and SMSFs: What’s allowed by the ATO

Here’s what you can do with crypto inside an SMSF:

• The investment must be in the fund’s name, not your personal name.

• The crypto must be held in a dedicated SMSF wallet or exchange account, separate from your personal stash.

• Your SMSF’s investment strategy has to mention crypto, including how it fits into diversification, risk and return.

• Every transaction must be recorded, valued, and reported for your annual return and audit.

In other words, you can invest – but only if it’s structured, documented, and managed by the book.

What’s off the table

If you’re thinking about flipping your fund’s Bitcoin into your personal wallet or paying for a Tesla with SMSF crypto, that’s a hard no. Personal use of SMSF assets is never allowed.

The same goes for lending crypto to yourself (or anyone else), buying NFTs linked to personal perks, or experimenting with high-yield lending schemes that don’t pass the compliance test. Even if the asset looks exciting, if it doesn’t meet the sole purpose test (benefiting members in retirement only), it won’t stand up at audit.

And while scams can hit anyone, crypto investors know the risks run high. Trustees need to be extra cautious of platforms or offers promising guaranteed returns. If it sounds too good to be true, it usually is – and it could cost your fund dearly.

Tax time and record keeping for crypto SMSFs

Crypto in an SMSF is taxed much like shares. Capital gains tax applies when assets are sold or swapped, and you’ll need accurate records of every trade: dates, AUD values, and counterparties.

The ATO also requires your crypto to be valued at market rates every financial year. With prices moving fast, reliable valuation sources and consistent methods are critical.

Auditors will check that everything lines up: that the crypto is in the fund’s name, stored securely, and backed by clean records. Using a hardware wallet or exchange account registered solely to the SMSF is one way to tick these boxes.

One common mistake trustees make is relying on screenshots or forgetting to record the AUD value at the time of each trade. Every swap – even from one coin to another – counts as a transaction that must be logged. Software tools can help track trades automatically, but it’s your responsibility to make sure the records are audit-ready. Getting this wrong can cause serious headaches at tax time.

Crypto vs property: very different plays

Property and crypto are two of the most talked-about SMSF investments, but for totally different reasons.

• Property: solid, long-term, and often income-generating. But it can tie up a huge portion of your fund in a single, illiquid asset.

• Crypto: high growth potential, but with volatility that can test even experienced investors. Regulatory settings are still evolving, and the swings can be brutal.

For some trustees, crypto is an exciting diversification. For others, the risk is a dealbreaker. Many strike a balance – allocating a small portion of their SMSF to crypto while using property or shares to anchor long-term stability. This approach can also satisfy the ATO’s expectation that trustees consider diversification and risk tolerance when building an investment strategy. Crypto may be the “upside play,” but property often acts as the “safety net.”

The tech side: responsibility comes with it

If you’re already a crypto investor, you know secure storage matters. Inside an SMSF, the stakes are even higher. That means:

• Dedicated wallets registered to the fund.

• Multi-factor authentication and cybersecurity best practice.

• Meticulous records to satisfy auditors and protect members’ retirement savings.

The ATO is paying closer attention to crypto inside SMSFs, so trustees need to show compliance at every step. Good admin isn’t just box-ticking – it protects your assets from mistakes and risks.

How we help

At Andromedae, we get that crypto investors want more control over their future. Our role isn’t to tell you what coins to buy – it’s to make sure your SMSF runs smoothly, stays compliant, and avoids costly errors.

Whether your strategy includes crypto, property, or a mix of assets, we handle the administration and reporting so you can focus on building your retirement portfolio with confidence.

Ready to explore an SMSF with crypto? Get in touch with our team today.

Disclaimer: Andromedae and its staff do not provide financial advice on whether an SMSF is right for you. We also do not provide advice on what investments your SMSF should undertake. Our role is to manage the administration and compliance of your SMSF. Please seek advice from your own financial professionals to determine what is best for your personal circumstances. All content in this blog is provided as general information only.