Does your SMSF invest in Crypto?

The ATO has observed SMSF trustees losing crypto investments due to scams, theft, platform collapses, and lost passwords. Many crypto assets are not regulated as financial products, leaving trustees unprotected if a platform fails or is hacked. The ATO advises trustees to be aware of these risks and to seek financial advice before investing in crypto.

Also discussed in this month's edition:

1. Tax Implications for Support Payments:

• Assess tax implications of government support payments.
• Grants are generally taxable; some may be non-assessable.
• Deduct expenses directly linked to assessable income.

2. Super Benefits Caution:

• SMSF trustees must verify members' release conditions.
• Unlawful releases face penalties; rules persist during pension phases.

3. ATO's Visa Data Program:

• ATO monitors tax obligations via visa data.
• Aims to detect fraud; affects around nine million individuals yearly.

4. Cybersecurity Advisory (ATO):

• Cybercrime surged in FY2022 (one report every 7 minutes).
• ATO recommends updates, multi-factor authentication, regular backups, and strong passphrases.
  

Disclaimer: the above comments in this blog post are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.

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