CLIENT FAQ'S

What are the approved crypto exchanges/providers?

Currently the approved exchanges/providers are:

Coinspot, Independent Reserve, Binance, BTC Markets, Swyftx, Celsius and BlockFi.

Trading on any other exchanges / providers will incur a fee of up to $550 per coin per unapproved exchange and we may not be able to complete your tax return.

How do I set up my BlockFi account and can I borrow funds or get a loan?

While you are permitted to lend out and earn interest on your coins you are NOT permitted to borrow funds or use the equity in your SMSF to get a loan.

https://newbrightoncapital.com/blog/how-to-set-up-a-blockfi-account-for-your-smsf

Can I trade on De-fi platforms?

No. As there is no central authority for defi the auditors will not sign off as they require a report from the exchange. Currently you can only buy, sell and trade on the approved providers above. Trading on unapproved platforms will incur a $550 fee and we may not be able to complete your tax return.

What are the approved share trading platforms?

ANZ, Commsec, NABTrade, Interactive Brokers or SAXO markets

What can I pay for with my SMSF?

Anything that is solely related to the SMSF you can pay for from your super fund. Eg. A hardware wallet to store your crypto off-exchange. Trading subscriptions to help you learn about investing in your SMSF. All accounting fees and taxes payable. Life insurance, TPD and Income Protection.

https://newbrightoncapital.com/blog/can-your-smsf-pay-for-insurance

I need to make a credit card payment but don’t have a card for my SMSF

If you need to make a credit card purchase but do not have a card, you can make the purchase from your personal account and then reimburse yourself the exact amount from your SMSF with a transfer.

Please make sure you keep all tax invoices and have the invoice billed in the name of the SMSF and not your personal name.

Is staking allowed in my SMSF?

Yes, You are allowed to stake any coin as long as it is purchased on an approved exchange. The transactions will not count towards your annual transaction limit.

Staking on approved exchanges is free.

However, if staked off-exchange (in a wallet), there will be an additional fee of $55 per coin per year. This is to cover the additional accounting required.

For off-exchange staking, we also require a downloadable report (excel or CSV format) of the staking rewards earned during the year.

What is my ESA?

Your new ESA is: “AUSPOSTSMSF“. ESA stands for Electronic Service Address – it is a service that automatically notifies you and the ATO whenever you receive a super payment. Your employer will use your ESA code (“AUSPOSTSMSF”) together with your fund’s ABN to set up this messaging service. Please alert your employer of the change.

Can I own property/real estate in my SMSF?

You are permitted to own real estate in your SMSF, however there are rules you need to abide by that you need to consider before purchasing. Please check out this blog:

https://newbrightoncapital.com/blog/owning-real-estate-in-your-smsf

What is PAYG and do I have to pay it quarterly?

PAYG (pay as you go) means you pay the tax for your SMSF at the end of each quarter instead of at the end of the financial year. You must pay it quarterly and cannot pay annually.

https://newbrightoncapital.com/blog/how-does-payg-work

Can I add another member to my fund, how do I do it and what are the costs?

You can have up to 4 members in your fund. It costs $440 to set up the new member and an additional $20 per month for accounting fees.
https://newbrightoncapital.com/blog/multiple-members-in-an-smsf

Why is my first invoice for accounting fees larger than the monthly fees?

As detailed on the pricing page, the application page and the engagement agreement, the accounting fees for a single member fund are $150 per month ($150 x 12 = $1800 per financial year). The cost is $1800 per financial year regardless of when the fund is established. This is because the cost to complete the accounting, financial statements, audit and compliance costs the same whether your fund is open for 1 month or 12 months. Once you have the SMSF bank account set up we set up a direct debit. The first monthly debit brings the fund up to date for the financial year.

For example: if a single member fund is set up in December the first debit will be $150 x 6 = $900. From then on the monthly debit is $150. Accounting fees are a tax deduction for the fund.

Is there a 90% diversification rule?

The important thing to understand here is that while a “90% rule” does not exist, “considering” the diversity of your investments is a requirement and an important part of running your SMSF responsibly. As you are effectively the fund manager for your SMSF, as long as you have considered the risks and are investing for the future benefit of the members, then you are not limited regarding the percentage allocation to any investment or asset class. https://newbrightoncapital.com/is-there-a-90-diversification-rule/ 

What are the 2 types of contributions I can make into my SMSF and how do you know which one it is?

Read this blog about super contributions. At tax time we will ask you if there were any personal contributions and if they were concessional or non-concessional.

https://newbrightoncapital.com/blog/types-of-super-contributions

How SMSF Tax Is Calculated?

There are 3 instances where you will pay tax on your yearly SMSF Tax return:

1. ATO Supervisory Levy – Each year when your tax return is lodged your fund is required to pay a supervisory levy to the ATO of $259. Note that new funds in their first year need to pay this amount twice when lodging their first tax return, then once a year from then on.

2. Income, Dividends & Contributions / Expenses & Fees – All the income into your fund from employer contributions, personal contributions (up to a certain amount) and dividends is taxed at 15%. The taxable amount is offset by any expenses and fees your fund paid throughout the year. (eg accounting fees, hardware wallet etc)

3. Capital Gains / Capital Losses – Any time a single asset is sold for a profit. eg you buy a coin for $1 and then you sell the coin for $10, you are taxed on the $9 profit you made.
15% tax if held for less than 12 months, 10% tax if held for more than 12 months.

If you make a loss on the sale of an asset, your loss will be offset against your gains.

What are the penalties for SMSF non-compliance?

The ATO decides what penalties they impose depending on the situation. Here is a link that explains this better:  How the ATO deals with non-compliance

Can you buy into an ICO with your SMSF?

You can only purchase coins already listed on approved providers, so unless the ICO is listed on an approved exchange, unfortunately you cannot purchase it until it listed on an approved exchange.

Can you buy into an IPO or private companies with your SMSF?

Yes, you can invest in an IPOs( initial public offerings) or private companies, we would simply need the applicable info at tax time.

  • Company details
  • Number of shares allocated
  • Annual financials, valuations
  • Other information as may be required by the accountant and auditor.