things to be aware of before deciding

Know your responsibilities


All trustees/directors of SMSFs are equally responsible for the running of the fund for the benefit of its members. You should understand your responsibilities before setting up your fund. You can learn more about SMSFs from the ATO website here. Also, please ensure that all members/directors can access their super, are eligible to run an SMSF and satisfy the residency rules

Keeping things seperate


All SMSF accounts and transactions must be kept totally seperate from your personal accounts. So you need to set up dedicated SMSF accounts for banking, crypto exchange accounts etc. Mixing funds with personal accounts could end you up with a hefty fine from the government.  So make sure you check with us if you are unsure.

Check your insurances


Retail super funds give better insurance deals than you can get with an SMSF because they buy 1000's of policies at a time. If you are on a good deal and want to keep it, you can keep a few thousand in your old fund to keep the policies active and rollover the rest. The rules are different with different funds so call your provider to find out more. 

100 Transactions per financial year within the fund


Our $140 per month accounting fees cover the tax returns, audits and compliance on up to 100 transactions within the fund per year. This is more than enough for the vast majority of clients. Additional transactions will be charged at $3.30 per transaction.

No borrowing, leveraging or shorting allowed


You cannot borrow, leverage or short any crypto within the SMSF. No exceptions. Doing so could leave you with a government fine. You can borrow to purchase property in an SMSF if you set up a bare trust which we can offer for additional costs.

Approved exchanges and data feeds.


You may only trade on our approved exchanges, CoinSpot, Independent Reserve and Binance. You are also required to provide "read only" access to SMSF accounts via API or data feed where available. This helps us complete work during the year and means less hassle for you at tax time.

Buying gold in your SMF


You can buy gold and precious metals in your SMSF. If storing it at home you need to get it insured under a policy held by the SMSF. Be sure you can get insured before purchasing the precious metals otherwise you will need to keep it with a custodian.

Multiple members in the SMSF

crypto smsf bitcoin superannuation

You can have up to 4 members in your SMSF and the cost to run it is the same. Each member is equally responsible for the running of the fund. The SMSF runs as one entity so you cannot for example say "this is my gold and this is your bitcoin."  You are all in it together.

The bottom line


It is important to understand that each person in the fund is acting as a member and a fund manager. You as the fund manager are responsible for investing the member's money for their retirement. It is against the law to borrow from the fund for personal use.

Set up Timeframes

Why it might take longer than 2-3 weeks

The standard time it takes from completing the application until you own assets in your new SMSF is 2-3 weeks. This is true for over 90% of applications. However hold ups can occur. 

The most common hold up is waiting for the ATO to approve the fund. The ATO approval is needed before you can open the bank account or apply for your rollover. If it takes longer than a week for the ATO to approve the fund you are likely getting an initial audit. This is where an ATO representative will double check the paperwork and want to ask you questions to make sure you understand what you are doing.  This will add a few weeks to your set up process as the members will need to book in a time to speak with the ATO rep. Please let us know ASAP if the ATO advise you are getting an initial audit so we can send you an info pack on how to deal with it. The initial audit is nothing to be worried about and New Brighton Capital has never had a client fail the audit.

The ATO states that Initial SMSF audits are random, however from our experience, you are more likely to be flagged for an initial audit if you ...

  • are not up to date with other tax obligations.
  • are unemployed
  • are on government benefits.
  • are a low income earner 
  • have a super balance under $30,000.


We are here to help.

While New Brighton Capital does not offer financial advise, we are here to help. If you are unsure on some of the ins and outs regarding an SMSF, why not book free consultation with one of our specialists who can answer your questions in plain english?

Book free consultation