Australian tax Authority Warns Retirees Against Risky Cryptocurrency Investments | BTCMANAGER
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In a bid to remind 18,000 retirees under Self Managed Super Funds (SMSFs) of their legal duty to invest their retirement savings cautiously, the Australian Tax Office (ATO) has begun sending stern letters to some of these individuals whom have chosen to spend over 90 percent of their retirement savings in a single asset class such as cryptocurrency, reports Micky on August 16, 2019.
ATO’s Letters to SMSFs
Per the report, ATO has begun sending letters to 18,000 SMSFs who take the sole responsibility of deciding how their private superannuation fund is managed instead of employing the services of relevant professionals.
Reportedly, ATO’s letters are to serve as a warning to SMSFs who have thrown caution to the wind and invested a large chunk of their retirement savings in a single asset class such as cryptocurrency, property, and others.
Part of the letter outlines that SMSF owners have a responsibility to adhere to legal requirements by adopting non-risky investment strategies.
According to Dana Fleming, ATO assistant commissioner, the agency’s primary aim of sending the letters is to make it clear to retirees that it is illegal to put all their eggs in one basket by investing more than 90 percent of their funds on one asset class.
The Australian law stipulates that SMSFs who fail to adhere to the regulation could be fined up to $4,200.
Reason Behind ATO’s Letters