The setup path
This page outlines the workflow for setting up a bitcoin SMSF. The process involves establishing the SMSF structure, opening exchange accounts, rolling over existing super, and setting up secure storage.
Most people use professional services for SMSF setup and management. This page describes the workflow using Udo SMSF for SMSF administration and The Bitcoin Adviser for secure storage, but the same structural steps apply regardless of which service providers you choose.
Note: This is an educational overview of the process. Always consult with appropriately qualified professionals before making decisions.
What you'll need
Before booking your consultation call, gather the following information and documents. This preparation helps make the process as seamless as possible.
Required information and documents
- Your Super Member Number from your current super fund
- Your Tax File Number (TFN)
- Front and Back of your Driver's License OR Passport (for trustee identification)
- Director ID (if setting up a corporate trustee). This is a unique identifier required for all company directors in Australia. You can obtain your Director ID from the Australian Business Registry Services (ABRS) — the application takes approximately 5 minutes on the government website. You'll need your myGovID app set up to complete the application.
Getting your Director ID
If you're setting up a corporate trustee (recommended for SMSFs), you'll need a Director ID. This is a free, unique identifier that all company directors must have.
How to apply:
- Set up your myGovID app on your smartphone (if you don't already have one)
- Visit the ABRS Director ID application page
- Complete the online application (takes approximately 5 minutes)
- You'll receive your Director ID immediately
Note: You only need to do this once — your Director ID is permanent and applies to all companies you direct.
For security purposes: Please do not send your personal details via email. All sensitive information should be submitted through Udo SMSF's secure portal after you've booked your consultation call.
Next step: Once you have this information ready, book your consultation call. Prior to the meeting, you can pay the ASIC fee so your application can be processed immediately.
The setup process
The complete process typically takes 2–4 weeks from initial contact to first bitcoin purchase, depending on rollover timing and documentation speed.
1Book consultation call
Book a consultation call through BitcoinSuper.io to discuss your bitcoin SMSF goals. We connect you with Udo SMSF for a consultation about SMSF structure and requirements. Prior to the meeting, pay the ASIC fee so your application can be processed immediately.
Timeline: Response within 24 hours
2Submit documentation
Submit your details via Udo SMSF's secure portal (Super Member Number, TFN, identification documents, Director ID). Udo prepares all documents, including trust deed, ATO applications (TFN, ABN), and corporate trustee setup.
Timeline: 5–10 minutes to submit, 1–2 days for document preparation
3Sign and register
Review and sign Udo's provided documents. Upload trustee identification. Udo registers your SMSF with the ATO and sets up a bank account in the SMSF's name.
Timeline: 1–2 days for signing, 3–4 weeks for ATO registration
4Exchange account
Set up an exchange account (such as Independent Reserve) for bitcoin purchases. The account must be in the SMSF's name, not your personal name.
Timeline: 1–3 days
5Rollover existing super
Transfer funds from your current super fund to your new SMSF bank account. Converting your super to cash before the rollover can speed up the process.
Timeline: Up to 28 days, but often faster
6Secure custody setup
Work with The Bitcoin Adviser to implement collaborative security, including multi-signature wallets and geographically distributed private key management. This setup occurs during SMSF establishment.
Timeline: Completed during SMSF establishment
Service providers
Setting up a bitcoin SMSF requires expertise in both SMSF administration and bitcoin custody. These are distinct specialisations.
Udo SMSF
SMSF administration and rule compliance
- Complete SMSF setup: trust deed, ATO registration, corporate trustee
- Ongoing compliance: annual audits, tax returns, ATO reporting
- bitcoin integration: works with Australian exchanges like Independent Reserve
- Pricing: $1,738 (plus GST) setup, $2,125 (plus GST) annual
The Bitcoin Adviser
Bitcoin secure storage and security
- Collaborative security: multi-signature wallets with distributed key management
- No single point of failure: geographically distributed private keys
- Estate planning: comprehensive bitcoin inheritance strategies
- Education and support: secure bitcoin storage practices
Integrated workflow: Udo SMSF handles all SMSF rule compliance and administration, while The Bitcoin Adviser manages secure storage. This separation of responsibilities ensures both regulatory compliance and operational security.
Costs and tax considerations
Running a bitcoin SMSF involves setup costs and ongoing annual fees. Understanding these costs helps you make an informed decision.
Setup costs
- ASIC Fee: $611 (one-time, paid before consultation)
- SMSF Setup: $1,738 (plus GST)
- Annual Audit: $495 (plus GST) — included in first year
- Exchange account: Free setup with Australian exchanges
- Bitcoin secure storage: Fees vary based on The Bitcoin Adviser's services
Ongoing annual costs
- Udo SMSF Annual Fee: $2,125 (plus GST)
- Annual Audit: $495 (plus GST) — included in annual fee
- ATO Supervisory Levy: Approximately $500/year
- ASIC fees: Approximately $60/year (for corporate trustee)
- Bitcoin management: Exchange and secure storage fees
Note: Discounts may be available. Discuss pricing options with Udo SMSF during your consultation call.
Important: Your super fund covers all fees directly — zero out-of-pocket expense for you (except the $611 ASIC fee, which your new SMSF reimburses to you once setup is complete).
Tax benefits
SMSF bitcoin investments are taxed at 15% (concessional rate) rather than personal tax rates (up to 45%+). Setup and ongoing costs are generally tax-deductible.
Tax benefits depend on your personal circumstances. Consult with a tax professional.
Risks and responsibilities
SMSF fund managers (trustees) are legally responsible for following the rules. Bitcoin SMSFs add operational risks related to secure storage and security.
Investment risks
- bitcoin volatility: Prices can fluctuate significantly
- Regulatory changes: Government policy may impact bitcoin
- Technology risks: Potential security vulnerabilities
- Liquidity concerns: bitcoin may be harder to sell quickly than traditional assets
Compliance risks
- ATO penalties: Non-compliance can result in heavy fines
- Audit requirements: Annual independent audits are mandatory
- Record keeping: Detailed documentation required for all transactions
- Fund manager responsibilities: Legal obligations for all members
Professional support: Udo SMSF handles all rule compliance requirements, annual audits, and ATO reporting. The Bitcoin Adviser implements institutional-grade security with collaborative security. Using professional services reduces but does not eliminate compliance and operational risks.
DIY vs professional setup
You can set up an SMSF yourself, but professional setup is strongly recommended for bitcoin SMSFs due to rule compliance complexity and secure storage requirements.
DIY setup
- Lower upfront costs: save on professional fees
- Full control: complete oversight of the process
- Learning opportunity: deep understanding of SMSF requirements
- Time intensive: significant research and paperwork required
- Higher risk: compliance mistakes can be costly
- Ongoing complexity: annual audits and tax returns
Professional setup
- Expert guidance: specialised SMSF and bitcoin custody knowledge
- Compliance support: ATO and ASIC standards met
- Time efficient: 2–4 weeks vs months of research
- Ongoing support: annual management included
- Security expertise: professional bitcoin secure storage
- Reduced risk: focus on strategy, not compliance details
For bitcoin SMSFs: Professional setup is strongly recommended due to the complexity of rule compliance requirements and the critical importance of secure bitcoin storage. Mistakes in either area can be costly.
Before you start
Before setting up a bitcoin SMSF, ensure you understand the basics of SMSFs and bitcoin.
- Understand SMSF responsibilities and rule compliance requirements
- Understand bitcoin's structural properties and risks
- Have sufficient super balance to justify setup costs
- Be comfortable with long-term investment horizons
- Be prepared to take responsibility for trustee duties
Educational information only. BitcoinSuper does not provide financial advice. See full disclaimers →