Can my Discretionary Trust Buy Crypto?
Discretionary Trusts can buy cryptocurrencies from Australian Transaction Reports and Analysis Centre (AUSTRAC) licensed and regulated digital asset exchanges in Australia. The process is simple and can be outlined in 4 steps:
- Step 1: Sign up to a trusted and regulated Australian exchange like CoinSpot.
- Step 2: Verify your account as Business or Trust (as shown below).
- Step 3: Deposit Australian Dollars (AUD) from any bank account.
- Step 4: Select the Crypto you want to buy and execute the trade.
Once you buy the Cryptocurrency in your Discretionary Trust account on CoinSpot, you will be able to securely store them on your CoinSpot managed wallet.
Tax Benefits of Buying Crypto with a Family Trust
As mentioned earlier, there are a myriad of reasons why it is beneficial for sophisticated investors to create a Family Trust. For cryptocurrency investing, those benefits include but are not limited to the following:
- Discounts on Capital Gains Tax: You can get a 50% discount on capital gains tax for holding an asset like Bitcoin or Ethereum for over 12 months.
- Tax Minimization: Distribute income or other capital earned to beneficiaries of your Family Trust to optimise your tax minimisation strategy.
As always, it is important to check in with a financial or accounting professional to make sure that you are getting proper guidance on tax for your Family Trust and crypto.
What is the Best Exchange for a Family Trust?
We generally recommend the CoinSpot cryptocurrency exchange as the best way to buy crypto through a Family Trust. They are the largest and safest Australian exchange that has over 2 million users on their platform.
The onboarding process for a Family Trust is also incredibly smooth on CoinSpot thanks to their professional and experienced Account Support team.
You can also buy and hold over 300 different cryptocurrencies through your Family Trust on their platform with low fees and secure storage.
The Bottom Line
Buying cryptocurrency through a Family Trust has numerous tax benefits and can be a great way to diversify your portfolio. CoinSpot is one of the best exchanges for Aussie investors, with fast onboarding and competitive fees. As always, please make sure you seek professional advice from an accounting or financial advisor before committing to any investment decision.