Self-managed superannuation fund (SMSF) trustees should be aware of the new rules for holding investments in collectables and personal use assets that come into full effect on 1 July 2016.

The new rules that were introduced 1 July 2011 have amendments to the guidelines for storage, insurance and valuation of new collectables and personal use assets. The changes are to ensure items are used for genuine retirement purposes and to prevent SMSF trustees from receiving a personal benefit from the investment.

The Superannuation Industry (Supervision) Act 1993 (SISA) provides the rules and regulations related to any collectables or personal use assets held in an SMSF. The regulations specify collectables and personal use assets:

  • Not to be leased to any related party
  • Not stored in private residence
  • Document reasons for storage in writing
  • Maintain insurance in the name of the fund
  • Not to be used by any related party
  • Valuation must be determined by qualified independent valuer

Collectables and personal assets include:

  • Artwork
  • Jewellery
  • Artefacts
  • Antiques
  • Coins, medallions or bank notes
  • Postage stamps or first day covers
  • Memorabilia
  • Rare folios, manuscripts or books
  • Motor vehicles
  • Wine or spirits
  • Recreational boats

I would recommend that you review any assets that you have within your SMSF to determine if they meet the definition of collectable’s and if so undertake an analysis to determine if the costs of holding the assets outweighs the benefits.

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