self-managed super funds
Setting up a SMSF can seem like a daunting process but we aim to make it as seamless as possible. At Tax On Chain we assist clients establish crypto SMSFs and manage their ongoing crypto tax compliance so they can invest knowing their regulatory obligations are being met.
What is the process?
1. Video call
Get in touch through the contact form below and we will organise a time for a video call to ensure you understand your obligations.
2. Information request
If after our call you decide you want to proceed with setting up a crypto SMSF, we will forward you an information request to fill out.
3. Sign documents
We will have your SMSF established within 24 hours of receiving back the information request and the establishment documents will be sent to you for signing.
4. Australian Business Number & Tax File Number application
Once the establishment documents have been signed, we will apply for an ABN and TFN on behalf of the SMSF - this is usually instant but can take up to a week in some rare cases.
5. Open a bank account
After receiving your ABN & TFN you will be able to open a bank account for your SMSF which will be required in order to roll your existing super into your SMSF.
6. Notify employer of SMSF payment details
You will need to inform your employer of your new SMSF if wish to have your employer start paying your superannuation into your SMSF's bank account. We will provide you with the necessary documents and instructions on how to formalise this.
7. Rollover existing superannuation into your SMSF
With your bank account setup you will be able to request to have your existing superannuation balances transferred from your current Fund to your SMSF's bank account. This usually takes anywhere between 1 to 3 weeks.
8. Setup exchange accounts & wallets
While you wait for your funds to be transferred to your SMSF's bank account you should begin setting up accounts with the exchanges you intend to use as well as create new wallet addresses to be adopted by your SMSF. Exchange accounts must be setup in the name of your SMSF and any wallet addresses that will be used by your SMSF must be kept completely separate from your personal wallets.
9. Set up data feeds
With your bank account, exchanges and wallets all setup, we will setup data feeds that will enable us to reconcile your transactions throughout the year and monitor your activities to ensure you remain compliant. Date feeds also allow us to complete your tax and accounting work efficiently to keep your accounting costs down.
10. Set to go!
You are now ready to take control of your super. We will reconcile your SMSF's investing activities throughout the year to ensure the annual financial statements and tax return can be prepared in a timely manner. As part of our commitment to our clients, ongoing support and general advice comes free of charge, so you can pick up the phone and give us a call with the peace of mind knowing you won't receive an unexpected invoice afterwards.
What are the costs?
$400 per quarter
Annual Audit Fee
ASIC Annual Renewal
The establishment costs are required to be paid upfront, however, once your SMSF has been established and your funds have been rolled over into the SMSF's bank account, your SMSF can reimburse you for this cost.
We will monitor and reconcile your SMSF's transactions throughout the year and then prepare the annual financial statements and tax return to ensure your fund remains compliant with the SMSF regulations.
Annual Audit Fee
The financial statements of an SMSF are required to be audited by an independent auditor each year. We arrange for the audit on your behalf and liaise directly with the auditor should they have any queries regarding the SMSF's activities throughout the year.
ASIC Annual Renewal
ASIC charges an annual renewal fee of $56 to remain registered.
Frequently asked questions
How long does it take to setup an SMSF?
Once you have filled out our information request, we will have the fund established within 24 hours. The lengthy part of the process is having your existing funds rolled over from your current fund to your SMSF which can take anywhere from 1 to 4 weeks.
Can my SMSF pay for the establishment and other costs?
The establishment cost is required to be paid upfront, however, you can have your SMSF reimburse you once your existing funds have been rolled over into your SMSF's bank account. All ongoing costs can be paid for by the SMSF.
Is my SMSF restricted to using certain exchanges?
No, we don't restrict you to certain exchanges. Your SMSF is free to create accounts with your preferred exchange, however, setting up SMSF accounts is easiest with Australian based exchanges.
Can I use my personal exchange account for my SMSF?
No, exchange accounts must be setup in the name of your SMSF.
Can my SMSF provide liquidity and engage in other DeFi activities?
We strongly advise our SMSF clients to avoid engaging in DeFi activities. The reason for this is an external auditor is required to sign off on your SMSF's activities in order to remain compliant and if it is unclear how the SMSF's assets are being used, an auditor may deem your crypto SMSF to be non-compliant and you will incur hefty penalties.
Can my SMSF buy/sell assets on decentralised exchanges (DEXes) like Uniswap?
Yes, however, we advise our crypto SMSF clients to keep this to a minimum to ensure an auditor is comfortable with signing off on the activities of your SMSF. The more "on-chain" transactions you do, the harder it becomes to piece together your SMSF's crypto activities. If it is unclear how your SMSF's crypto assets have been used, your fund will be non-compliant and you will incur hefty penalties.
Can I store my assets in a hardware wallet?
Yes, you can keep your assets in a hardware wallet so long as the addresses used have never been used before and are only used by your crypto SMSF.
Can I stake my assets in my wallet?
Yes, however, we need to be able to easily verify your staking activities on the blockchain.
Do I have to rollover all of my existing super balances into my SMSF and close down my current super accounts?
No, you can choose to rollover only a portion of your existing balances into your SMSF.
Can I invest in non-crypto assets such as shares and commodities?
Yes, you are free to invest your super how you want.
Can I deposit my assets in services like Celsius and BlockFi to earn interest?
Yes, you can use Celsius and similar services to generate a yield on your crypto assets. However, you cannot take out a loan using these services.
Can I borrow against my SMSF's crypto assets using DeFi or CeFi (e.g. Celsius/BlockFi)
No. There are very strict rules around SMSF's borrowing and they can only borrow in very limited circumstances.
My existing accountant keeps charging me additional costs for things like staking and using other exchanges. Will Tax On Chain do the same?
No, our accounting fees are fixed to give you piece of mind.
Can I move from my current accountant to you?
Yes, we have many clients who have been unhappy with their current crypto tax service (usually in relation to hidden costs and poor communication) move across to Tax On Chain. We liaise directly with your accountant on your behalf to ensure a smooth transition.