SMSFs – Collectables & Personal Use Assets

Nov 2, 2015 | Personal Wealth, SMSF

Cathy Walley

Do you still own collectibles or personal use assets in your Self Managed Superannuation Fund?

If so, that’s OK, but make sure you understand the new rules and ensure that they are adhered to by 30th June 2016.

The assets in this class include items such as artwork, coins, wine, jewellery, vehicles or boats. As per the ATO fact sheet: “Investments in such items must be made for genuine retirement purposes, not to provide any present-day benefits.”

  • The assets are not lease to, or part of a lease arrangement with a related party
  • The assets are not used by a related party
  • The assets are not stored or displayed in a private residence of a related party


  • You must keep written records on where the asset is stored and why
  • The asset must be insured in the fund’s name

Consider this scenario: in 2010, your super fund invests in a painting; it is leased to your business and hung at the business premises. The business, a related party, annually pays a lease to the super fund as per the lease agreement. The artwork is covered under the businesses insurance policy.

By 30th June 2016, you would need to find a new home for the artwork as currently you are getting a present-day benefit by being able to view and enjoy the painting. You need to insure the asset in the super fund’s name and prepare written documentation as to where the asset is held and why.

If this seems too onerous, or you are concerned as to who would lease the artwork from you, you may consider selling the painting to the business or a third party. Note that if you sell the artwork to a related party after 30th June 2016, you are required to use a market valuation as determined by a qualified, independent valuer.

Related insights

ATO – Important Information

ATO – Important Information

ATO - IMPORTANT INFORMATION Warning - ATO attack on professionals The ATO has finally released its final version of the ATO approach on allocation of professional firm profits (PCG 2021/4) just days before the Christmas break with a start date of 1 July 2022. ...

read more
Federal Budget 2021/2022

Federal Budget 2021/2022

The video features Troy Smith, IOOF Senior Technical and Regulatory Change Manager, and provides clients with a high-level overview of the proposed changes referring them to the Client Summary Fact Sheet for more information. Federal Budget 2021 Fact Sheet...

read more
Federal Budget 2020

Federal Budget 2020

The Treasurer Josh Frydenburg released his 2nd budget as Treasurer on Tuesday night (5 months late) with a mantra on JOBS, JOBS and more JOBS plus business spending which they hope will create even more JOBS.  We have JobKeeper and JobSeeker already – budget...

read more

Subscribe for the latest news + updates

Get in touch to explore your opportunities with an LBW expert and discover your journey to a better financial future.