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SMSFs and investing in Collectables
Tuesday 05 March 2013
BY MELISSA MCCRYSTAL, ACCRU RAWSONS, BRISBANE
Thinking of investing your super money in art or jewellery? The good news is these are considered suitable investments for SMSFs if part of your investment strategy, however there are rules relating to collectables and personal use assets that all superannuation fund trustees need to be aware of.
Collectables and personal use assets include:
- Coins, medallions or bank notes
- Postage stamps or first day covers
- Rare folios, manuscripts or books
- Wine or spirits
- Motor vehicles
- Recreational boats
- Memberships of sporting or social clubs
For acquisitions by fund trustees after 1st July 2011, the following rules apply to investing in the above type of assets:
- Collectables and personal use assets must not be leased to any related party of the fund
- Collectables and personal use assets must not be stored or displayed in the private residence of any related party of the fund
- Trustees must make a written record of the reasons for the decisions on where to store the collectables and personal use assets and keep the record for 10 years
- Trustees must ensure that collectables and personal use assets (other than a membership of a sporting or social club) are insured in the name of the fund within seven days of acquisition
- Collectables and personal use assets cannot be used by any related party of the fund
- The transfer of ownership of collectables and personal use assets to a related party of the self-managed super fund must be done at a market price determined by a qualified independent valuer.
For funds that already had investments in collectables and personal use assets prior to 1st July 2011, trustees have until 1st July 2016 to ensure their investments comply with the above regulations.
Please call your local Accru office should you wish to discuss the rules in relation to investing in collectable and personal use assets through your self managed superannuation fund in detail.