What happened
Nucleus Wealth highlighted severe compliance risks for SMSFs holding cryptocurrency under Australian superannuation law. Trustees must satisfy the Sole Purpose Test under Section 62 of the SIS Act and asset separation under Regulation 4.09A. Common breaches include storing fund crypto in personal hardware wallets, using fund assets as collateral for personal trading, or paying personal expenses.
Why it matters here
Failing to establish clear legal ownership or providing personal utility from fund assets breaches superannuation law, risking heavy financial penalties or the loss of a fund's tax-concessional status. SMSF trustees must establish dedicated corporate trustee accounts on exchanges and isolated wallet infrastructure.
What to watch
Review all SMSF digital asset wallet structures and exchange account titles ahead of end-of-year fund audits to ensure full regulatory compliance with ATO guidelines.
Source
nucleuswealth.com