You are here: Home > Practice News > Self Managed superannuation Funds and Collectables

Self Managed superannuation Funds and Collectables

Self Managed Superannuation Funds and Collectables

During the early 2000's, before the global financial crisis, it was common for investments within Self Managed Superannuation Funds to consist of "collectables". "Collectables" could cover art work, jewellery, antiques, artifacts, coins, bank notes, postage stamps, books, wines or spirits, motor vehicles, recreational boats and memberships of sporting or social clubs.

In a time when Self Managed Superannuation Funds were becoming more popular and the economy was buoyant, why not put part of the Fund into collectables?

From 1 July 2011 collectables within Self Managed Superannuation Funds have been forbidden.

There was a grandfathering clause for collectables which had been acquired before that date. This grandfathering clause terminates from 1 July 2016.

If you have collectables within your Self Managed Superannuation Fund they should not be there by 30 June this year. There are certain exceptions. Most Self Managed Superannuation Funds will not meet the exception rules.

Do not risk your SMSF being non-compliant. The tax penalties on the Fund are horrendous. Penalties also apply personally to the trustee or trustees.

If you think your SMSF may fit into a category where you hold collectables seek professional advice now.

@

@

@

DR McConaghy

8 February 2016

This article is not a substitute for independent professional advice. We do not warrant the accuracy, completeness or adequacy of the information or material in this article. All information is subject to change without notice. We and each party providing material displayed in this article disclaim liability to all persons or organisations in relation to any action(s) taken on the basis of currency or accuracy of the information or material, or any loss or damage suffered in connection with that information or material. You should make your own enquiries before entering into any transaction on the basis of the information or material in this article. Please ensure you contact us to discuss your particular circumstances and how the information provided applies to your situation.

Back Email a Friend View Printable Version
eknowhow | The World's Best Websites
Facebook Linkedin Twitter
 
Privacy Policy and Disclaimer