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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

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