News Archives - CryptoSMSF - Crypto SMSF News, Regulation, Risk and Tax

Australian Government’s Proposed Crypto Regulation Framework – The Full Details.

The Australian government has proposed a new regulatory framework for crypto assets that is designed to protect consumers and support innovation in the sector. The framework, which is still in its early stages of development, is expected to be finalized in 2024.

Key features of the proposed framework

Digital asset service providers (DASPs) will be required to hold an Australian Financial Services Licence (AFSL).
A new type of financial product called a ‘digital asset facility’ will be introduced.

Tax Implications of Crypto in SMSFs

Self-managed super funds (SMSFs) are a popular way for Australians to save for retirement. However, there are a number of tax implications to consider when investing in cryptocurrencies through an SMSF.

For tax purposes, cryptocurrencies are considered capital gains tax (CGT) assets. This means that when an SMSF sells a cryptocurrency, it will be liable for CGT on any capital gain. The CGT rate for SMSFs is 15% for assets held for less than 12 months, and 10% for assets held for more than 12 months.

SMSF trustees and members should seek independent professional advice before making any investment decisions.

Shielding Against Phishing Scams. Tips for Protecting Your Online Security

Recognising Phishing Scams: How to Protect Yourself from Online Threats. Learn to identify phishing tactics, spot suspicious URLs, and be cautious of urgent requests. Stay secure with two-factor authentication (2FA) and adopt best practices to safeguard your digital identity from online fraud. Protect yourself from cybercriminals seeking to exploit your personal information and financial details.

National Australia Bank (NAB) joins Australian Banks blocking transfers to Cryptocurrency Exchanges

National Australia Bank (NAB) has announced that it will be blocking transfers to cryptocurrency exchanges, following in the footsteps of other Australian banks including Westpac and the Commonwealth Bank of Australia. The bank cited concerns about the risks associated with cryptocurrency trading, including volatility, fraud, and money laundering.

NAB’s decision is likely to have a significant impact on the Australian cryptocurrency market, making it more difficult for Australians to buy and sell cryptocurrencies. The bank is the largest in Australia by market capitalization, and its decision could push other banks to follow suit.

Proposed Change Threatens to Increase Costs for SMSF Owners

The proposed removal of tax deductions for tax advice expenses in self-managed superannuation funds (SMSFs) has raised concerns about increased costs for SMSF owners. This potential change could impact the financial burden on trustees, particularly those with smaller funds who rely on external professionals for taxation advice. The Australian Taxation Office (ATO) reports that approximately 75% of SMSFs use external professionals, making the loss of the tax deduction a significant concern. Critics argue that this change may discourage individuals from establishing or maintaining SMSFs, limiting their flexibility in managing retirement savings. As discussions on tax reform continue, policymakers should carefully consider the impact on the SMSF sector and explore alternative approaches to strike a balance between revenue considerations and the needs of trustees and members.

CRNCY

Australian Crypto News & Analysis