There is currently a transition period in place for new rules that apply to any artwork or collectibles held by an SMSF, however this transition period is coming to an end at1 July 2016.
As a result of the Cooper in SMSFs review, rule changes have been implemented in relation to the requirements for the ownership of collectible and personal use assets by SMSFs. These rules will apply to any specified asset acquired after 1 July 2011 and will also apply to assets owned prior to this date with effect from 1 July 2016.
What assets are considered Collectibles and Personal Use Assets?
The types of assets that are covered by these requirements are outlined in the SIS Act and the rules pertaining to the ownership and usage are covered in SIS regulations. Collectibles and Personal Use Assets include the following:
- artwork (defined as painting, sculpture, drawing, engraving, photograph including reproductions)
- coins or medallions
- postage stamps or first day covers
- rare folios,
There are a number of regulatory changes that apply from today (7 August 2012) that may impact your SMSF. These changes are in regards to insurance, investment strategies, keeping investments separate and in the correct name and valuation of assets. The following is a simplified explanation of these changes and how they impact you as trustees of your SMSF.
As part of the required investment strategy of a SMSF, insurance must now be considered.