ATO Rules & Compliance Reference

This page catalogues official ATO rules, requirements, and guidelines relevant to Self-Managed Super Funds (SMSFs), with a focus on holding Bitcoin/cryptocurrency. This information helps you understand what rules exist so you can make your own informed decisions with professional guidance.

This is a reference catalogue only. This is NOT financial, legal, or tax advice. All information is drawn from official ATO publications, taxation determinations, and compliance guidance as of early 2026.

Important: This page catalogues official ATO rules and requirements for educational reference only. This is NOT financial, legal, or tax advice. This information helps you understand what rules exist so you can make your own informed decisions with professional guidance. Always verify current rules with the ATO or appropriately qualified professionals before making decisions. Rules change over time.

Last verified: January 2026. Always verify current rules with ATO or qualified professionals. This page is reviewed annually post-July financial year changes.

1. General SMSF Compliance and Setup Requirements

Fundamental requirements for establishing and maintaining an SMSF, including registration, lodgment obligations, and compliance focus areas.

SMSF Registration and Election to be Regulated

New SMSFs must register for an ABN/TFN via the Australian Business Register and elect to be ATO-regulated to access tax concessions. Funds must lodge their first annual return by 31 October 2025 (or 28 February 2026 if using a tax agent).

ATO Source: Register your SMSF (Updated: 14 November 2025)

SMSF Lodgment Obligations

All SMSFs (new or existing) must lodge an annual return (SAR), pay any tax/supervisory levy, and appoint an auditor at least 45 days before lodgment. Overdue lodgments can change fund status to 'regulation details removed' and incur penalties.

ATO Source: New SMSF? Here's what you need to do by 31 October (Published: 24 July 2025)

SMSF Compliance Focus Areas (2025–26)

ATO prioritizes early access to super, late annual returns, and failure to comply with release/commutation authorities. Non-compliance can lead to penalties, loss of tax concessions, or audits (ATO plans 6,600 SMSF reviews/audits in 2025–26).

ATO Source: ATO corporate plan 2025–26: What it means for SMSFs (Published: 26 August 2025)

2. Sole Purpose Test

The fundamental requirement that SMSFs must be maintained solely for providing retirement/death benefits to members.

Sole Purpose Test (Section 62 of SISA)

SMSFs must be maintained solely for providing retirement/death benefits to members. All investments and activities must align with this; breaches (e.g., personal benefits) can lead to loss of tax concessions and penalties. Cryptocurrency investments must meet this test—no personal use allowed.

ATO Sources:

SMSFR 2008/2 Ruling

Provides detailed guidance on applying the sole purpose test, prohibiting non-retirement purposes. Contraventions may indicate breaches of super laws.

ATO Source: SMSFR 2008/2 (Published: 16 July 2008)

3. Investment Strategy Requirements

Requirements for preparing, implementing, and reviewing SMSF investment strategies, including cryptocurrency considerations.

SMSF Investment Strategy (Regulation 4.09 of SISR)

Trustees must prepare, implement, and regularly review a written investment strategy tailored to the fund's objectives, considering risk, diversification, liquidity, and member circumstances. Cryptocurrency must be explicitly permitted and risks (e.g., volatility) documented.

ATO Sources:

Arm's Length Transactions and Market Value

All investments must be on commercial terms, reflect true market value, and be permitted by the trust deed. Crypto cannot be acquired from related parties if not listed securities.

ATO Source: What are the SMSF investment restrictions? (Updated: 16 September 2025)

4. Holding Cryptocurrency in SMSFs

Specific rules and requirements for holding Bitcoin and other cryptocurrencies in SMSFs, including custody, auditing, and tax treatment.

Navigating SMSF Crypto Assets

Crypto wallets must be in the SMSF's name; assets must be separate from personal holdings (breach of SISA if not). Sales/transfers trigger CGT. Tips: Use legitimate exchanges, maintain records for audits.

ATO Source: Navigating SMSF crypto assets (Published: 27 May 2025)

Auditing SMSFs with Crypto Assets

Auditors must verify crypto exists, belongs to the fund, aligns with strategy, is at market value, and complies with trust deed. Holding statements alone insufficient—qualify audit if unverifiable.

ATO Source: Auditing SMSFs with crypto assets (Published: 24 October 2025)

TD 2014/26: Bitcoin as a CGT Asset

Bitcoin is a CGT asset under subsection 108-5(1) of ITAA 1997, not currency. Disposals (e.g., sales) trigger CGT events in SMSFs.

ATO Sources:

ATO Crypto Data-Matching Program

The ATO conducts data-matching programs to identify and address compliance issues with cryptocurrency transactions. The program has been extended to 2025-26 and includes SMSF crypto holdings. SMSF trustees should maintain accurate records and ensure compliance with reporting requirements.

Note: This data-matching program is part of the ATO's broader compliance activities. SMSF trustees should ensure all cryptocurrency transactions are properly documented and reported.

5. Annual Audit Requirements

Requirements for annual independent audits of SMSFs, including what auditors must verify and ATO review processes.

SMSF Audit Requirements (Section 35C of SISA)

Every SMSF must undergo an annual independent audit (financial and compliance parts) by an ASIC-registered SMSF auditor. Appoint at least 45 days before SAR lodgment. Audits verify existence, ownership, valuation, and compliance.

ATO Sources:

What We Look for When Auditing an SMSF Auditor

ATO reviews auditor documentation for evidence on asset existence, valuations, compliance with SISA/SISR, and proper reporting via Independent Auditor's Report (IAR).

ATO Source: What we look for when auditing an SMSF auditor (Updated: 2 April 2025)

6. Contribution Caps and Transfer Balance Cap

Limits on contributions and transfers to pension phase, including current caps for 2025–26.

Concessional Contributions Cap

$30,000 for 2025–26 (indexed to AWOTE). Applies to before-tax contributions; excess taxed at marginal rate.

ATO Sources:

Non-Concessional Contributions Cap

$120,000 for 2025–26 (4x concessional cap). After-tax contributions; bring-forward rules apply for under-75s.

ATO Sources:

Transfer Balance Cap

$2 million for 2025–26 (increased from $1.9M; indexed to CPI in $100,000 increments). Limits amount transferable to tax-free retirement phase; personal caps may vary based on prior usage.

ATO Sources:

Educational information only. BitcoinSuper does not provide financial advice. See full disclaimers →