In response to the Cooper report recommendations, the regulations surrounding the ownership and use of collectibles and personal use assets by Self Managed Superannuation Fund’s (SMSF) have been tightened. These rules will apply to new acquisitions from 1st July 2011 and a transitional period to 30th June 2016 will apply for existing assets owned pre 1st July 2011.
Section 62A of the Superannuation Industry (Supervision) Act 1993 list the following as a collectible or a personal use asset:-
- Artwork;
- Jewellery;
- Antiques;
- Artefacts;
- Coins or Medallions;
- Postage Stamps;
- Rare folios or Manuscripts;
- Memorabilia;
- Wine;
- Cars;
- Recreational Boats; and
- Memberships of sporting or social clubs.
Under the new rules, SMSF must adhere to the following:-
- Cannot lease the asset to a related party;
- Cannot store the asset at a principal residence of a related party;
- The decision to store it must be documented (documetnation must be maintained for 10 years);
- The asset must be insured in the name of the SMSF within 7 days of acquisition;
- The asset cannot be used by a related party; amd
- If the asset is transferred to a related party, it must be supported by independent valuation.
Whilst some of the rules are self explanatory, if your superannuation fund do hold any of the above Section 62A items, it is worthwhile to speak to your professional adviser or one of our financial advisers to ensure it complies with the current legislation.
Hey, Alfred here – Did you enjoy my latest article? Do you have any questions or Feedback for me? Call me on (02) 9266 2269 or Book an Appointment online.
Remember that our first meeting is cost and obligation free.
