With less than a year to go before stricter rules reach their full effect in July 2016, SMSF trustees are reminded that collectables and ‘personal-use’ assets in their self-managed super fund must be:
- stored according to new guidelines,
- be covered by insurance, and
- be independently valued.
Collectables and personal-use assets held by a fund before 30 June 2011 must comply by 30 July 2016 or face harsh penalties.
SMSFs assets must not give rise to a personal benefit and must be held for the purpose of providing retirement benefits. If the assets do not comply with these rules, they must be sold before the deadline.
Collectables and personal use assets must:
- not be leased to a related party.
- not be stored or displayed in a private residence.
- have documented the reasons of the decision on where to store the assets in writing.
The asset must be insured in the Fund’s name within a week (7 days) of acquisition.
Valuation must be completed by a qualified independent valuer. Transfer of ownership of an asset must be done at a market price, which is to be determined by the valuer.
For more information of what assets classify as collectables and personal use assets, visit this ATO page.