Tax of Crypto-Currencies
Crypto-currencies, specifically bitcoin, acquired as an investment in an SMSF is taxed as a CGT asset within a superfund.
When transacting with Crypto-currencies it is essential to keep a trail of the transactions for CGT and audit purposes.
The SMSF must ensure to:
- Keep a track of the dated transactions,
- The Australian dollar amount of the transactions, and
- Who the other party was that the bitcoin investment was acquired from or sold to.
General CGT rules would apply when selling crypto-currency to third parties. That is, if the crypto-currency was held for less than 12 months, a 15% tax would be applied on the gain and if it was held for more than 12 months, the capital gain would be taxed at the discounted rate of 10%.
Founded in 2013, CoinSpot is Australia’s leading cryptocurrency exchange with the largest selection of tradable crypto assets in the country. CoinSpot seeks to remove the technical barriers to blockchain and cryptocurrency, by educating and enabling Australians of all levels to access this groundbreaking technology. Completely owned and operated within Australia, CoinSpot provides industry leading security & customer service for its users. With over 350 digital currencies including Bitcoin, Ethereum, Cardano and XRP, CoinSpot has helped over 2.5 million customers invest in cryptocurrency.
See our Virtual Currency page for more information on bitcoin ownership in an SMSF.