From 1 July 2011, the ATO implemented new legislative standards on collectables and personal use assets purchased by self-managed super funds (SMSFs). The objective was to ensure that any investments made by a fund for retirement purposes are used for that purpose and are not, in fact, current day benefits. Items which can be considered as collectables and personal use assets‚ may include such items as:
Artwork
Antiques and artefacts
Jewellery
Motor or recreational vehicles
Alcohol
Memorabilia
Postage stamps
Books or manuscripts
Club memberships
Coins and banknotes
The new standards, which apply to the acquisition, disposal, storage and maintenance of these items, state the following:
The item must not be leased to a related party (another member of the fund);
It must not be stored in the private residence of a related party;
If transferred to another party, the item must be independently valued;
It must not be used by another party;
The storage of the item must be recorded and kept for a minimum of 10 years;
Insurance for the item must be in the fund's name.
Anyone that holds collectable or personal use assets under their SMSF has until 1 July 2016 to comply with new regulations or to dispose of the item.