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

Also:

  • 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.

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