15 Mar 2016
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Update- Self Managed Super Funds (SMSF)
The transitional regulations for SMSFs with collectibles and personal use assets around leasing, storage, insurance and valuation will cease on 1 July 2016.
All collectibles and personal use assets held by an SMSF must comply by 1 July 2016 or be disposed of with each breach incurring a penalty of 10 units or $1,800 per trustee.
Collectibles and personal use assets include artwork, jewellery, antiques, artifacts, coins or medallions, postage stamps or first day covers, rare folios, manuscripts or books, memorabilia, wine, cars, recreational boats and memberships of sporting or social clubs.
The regulations require that these collectibles and personal use assets:
- are not used by or leased to a related party
- if sold to a related party, they must be sold at market value and supported by an independent valuation
- are not stored in the private residence of a related party and decisions relating to the storage must be documented and retained for at least 10 years
- are insured in the trustee’s name and within 7 days of acquisition
The main aim of the regulations is to ensure these investments do not give rise to a personal and or current day benefit for SMSF trustees but instead are held solely for the purpose of providing retirement income.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.