SMSF & Collectables

There is now a Bill before Parliament which will give us some clarity over the new requirements placed on these assets.  It is likely that they will have effect from the 1^st of July 2011 for any new asset.  For any investments made pre-July 2011 you will not be bound by the new rules until July 2016.

The new rules for your investment are as follows:

1. Must not be leased to a related party or subject to a ‘lease arrangement’ (informal lease) with a related party.
2. Must not be stored in the private residence of a related party.
3. Must keep a written record of their reasons for choosing to store the asset in a particular place.
4. Must be insured in the fund’s name and the insurance must be taken out within 7 days of purchase.
5. There must be no use of the asset or any kind.
6. If it is sold to a related party the price must be determined by a qualified independent valuer.