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
  • who the other party was that the bitcoin investment was acquired from or sold to

General CGT rules would apply when selling bitcoins to third parties. That is, if the bitcoin 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%.

Guidance on the tax treatment of Crypto-currencies on different scenarios

 

See our Virtual Currency page for more information on bitcoin ownership in an SMSF.

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Superannuation Warehouse is an accounting firm and do not provide financial advice. All information provided has been prepared without taking into account any of the Trustees’ objectives, financial situation or needs. Because of that, Trustees are advised to consider their own circumstances before engaging our services.