New SMSF Regulations for SMSF Investments

December 1, 2011

From 1 July 2011, the ATO implemented new smsf regulations legislative standards on collectables and personal use assets purchased by self-managed super funds (SMSFs). The objective was to ensure that any investments made by a fund for retirement purposes are used for that purpose and are not, in fact, current day benefits.

Items which can be considered ‘collectables and personal use assets’ may include such items as:

  • Artwork
  • Antiques and artefacts
  • Jewellery
  • Motor or recreational vehicles
  • Alcohol
  • Memorabilia
  • Postage stamps
  • Books or manuscripts
  • Club memberships
  • Coins and banknotes

The new standards, which apply to the acquisition, disposal, storage and maintenance of these items, state the following:

  • The item must not be leased to a related party (another member of the fund);
  • It must not be stored in the private residence of a related party;
  • If transferred to another party, the item must be independently valued;
  • It must not be used by another party;
  • The storage of the item must be recorded and kept for a minimum of 10 years;
  • Insurance for the item must be in the fund’s name.

Anyone that holds collectable or personal use assets under their SMSF has until 1 July 2016 to comply with new SMSF regulations or to dispose of the item.


Visit our Self Manged Super Fund Advisors








Previous post:

Next post: