SMSFs: collectables and personal use assets

The Assistant Treasurer and Minister for Financial Services and Superannuation has released draft legislation that will allow the Government to make regulations about how SMSFs can made, hold and realise investments in collectables and personal use assets.

Under the draft legislation, SMSFs will continue to be allowed to invest in collectables and personal use assets like artwork or stamps, provided they are held in accordance with tightened legislative standards from 1 July 2011.

“However, we are tightening the rules, so people can’t claim they are, for example, ‘collecting’ high-end sports cars, paying reduced tax and then actually driving around in those vehicles.”

The new rules will ensure these investments do not give rise to a personal benefit for SMSF trustees, but rather are held for the purpose of providing retirement benefits.