Buying collectibles in your SMSF

Do you have questions about what collectibles your SMSF can buy and sell?

Be aware, there are regulations that influence what collectibles your SMSF can own? The regulations also guide how those collectibles are managed.

Note, assets acquired by the fund from 1 July 2011 need to immediately comply with new regulations.

Assets held by the fund at 30 June 2011, benefit from transitional rules that allow trustees until 1 July 2016 to comply with the new regulations.

The purpose of the SMSF regulations

The regulations seek to ensure trustees do not gain a benefit from assets now.  For example, you cannot hang artwork purchased by your SMSF on your wall at home (or in your office) or wear jewellery acquired by the fund.

The Superannuation Industry (Supervision) Act 1993 (SIS Act) requires that all assets acquired by a SMSF be used for retirement purposes only.  If you are using the assets now, you breach the SIS Act as the asset is not exclusively for retirement purposes.

Storage of collectibles

Storage of collectibles owned by your SMSF is a major issue. It is important to demonstrate that you are not benefiting from the asset now.

This means not storing the asset at home or in the home of a related party. Nor can you arrange to lend the asset to a related party, even if the asset is being rented.

What is covered by the SMSF regulations?

The regulations cover collectable and personal use assets including;

• artwork
• jewellery
• antiques
• artefacts
• coins or medallions
• postage stamps or first day covers
• rare folios
• manuscripts or books
• memorabilia
• wine
• cars
• recreational boats
• memberships of sporting or social clubs

Do you have specific questions about your SMSF?

Contact CVW Accounting for a no obligation chat – we are happy to help.

This blog was first published in November 2012 then updated in January 2019