Australia: 100% Crypto-Invested Retirement Portfolios Are Illegal

CoinTelegraph

The Australian Tax Office has issued warning letters to 18,000 Self Managed Super Funds (SMSFs) for concentrating too much investment in one asset class. Under Australian law it is illegal to use more than 90% of retirement funds on a single class, such as property or cryptocurrency, as reported by local news outlet, Micky, Aug. 16.

Legally obliged to diversify your retirement portfolio

An SMSF involves an individual taking charge of their own retirement fund investment decisions, rather than relying on a professional fund manager. It is a major growth area for cryptocurrency businesses in the country, with a combined value of around AUS$7 billion.

But the tax office letters are reminding retirees that they have a “duty to comply with legal requirements to adopt investment strategies avoiding risky investments.”

Binance Banner  

Failure to do so could see them face a fine of up to AUS$4,200.

Not that a cryptocurrency investment is inherently risky

The majority of those breaching the regulations are invested in property, but an increasing number are turning to cryptocurrency. Which is perfectly okay, as long as the 90% rule is adhered to.

Australia actually has some of the most favorable laws around investing retirement funds into cryptocurrency. This is one of the reasons that Indian exchange, Zebpay, recently opened an office in the country. Zebpay CEO, Ajeet Khurana said:

“Australia happens to be the only developed country where retirement money, superannuation money, can very easily be invested into cryptocurrencies.”

But the message on investment diversification doesn’t always get through. The Bitcoin Australia website incorrectly states that, “You can decide how much you would like to invest in crypto. This can be as little [as] 1% or as much as 100% of your super — it’s completely up to you.”

A strongly-worded letter from the tax office should clarify matters for all.

Go to Source
Author: Jack Martin


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.