The Government has announced changes to the management of assets in relation to self-managed superannuation funds.
The new rules relate to insurance and the importance of having the right policy for fund assets. The regulations require all collectables to be insured in the name of the self-managed superannuation fund (SMSF) within seven days of acquisition. The fund may lose its complying status if assets are not adequately insured.
The key items in these changes are the collectibles listed under the SMSF policy, including jewellery, antiques, artefacts, coins, medallions and more. The items must be listed in the policy in the name of the fund, which has an insurable interest, and cannot be listed under any other insurance policy. The SMSF must be the beneficiary of accidents or damage that listed items may encounter, and the subsequent payout.
A separate policy for each item is not necessary. A ‘group’ policy can cover all the assets, provided they are clearly identifiable as fund assets.
The rules are effective immediately, although a transitional arrangement is in place for assets that were owned prior to 1 July 2012. Each fund has until 1 July 2016 to implement a policy for all items. Having the appropriate insurance in place for valuable items is a must for any collector of valuables.
To discuss your SMSF further contact our SMSF Specialists
