Whether it’s for diversifying the investment pool or even for the trustees fearing the next financial ‘doomsday’ event, a common question we get asked at Superfund Partners is “can an SMSF buy gold? And are there any rules we need to be aware of?”.
In short, yes and yes!
The first thing to consider is what type of gold we are analysing; are they collectable gold coins or bullion bars? For the purpose of our blog, we look at bullion bars. Please refer to ‘collectable rules’ via the ATO website for more details on collectables.
Gold bullion bars
Since they are not defined as a collectable, when an SMSF buys bullion bars, the key issues to consider are as follows;
Where will it be stored?
- Whilst there are no specific rules around this, it’s the trustee’s responsibility to make sure the gold assets are securely protected.
A question we often get asked is whether children – either minors or adults – should be included in your SMSF. In this article we run through some common situations where it can go horribly wrong, and the few occasions when you may be able to make it work.
Firstly, let’s start with the positive. SMSFs are fantastic vehicles for building wealth and when operated correctly can boost the financial literacy of all members regardless of age and you can have up to four members in an SMSF – so why not take advantage of it?
In just over four weeks will be in a new financial year. Understanding what you could do before and after 30 June 2014 can provide the icing on the cake for employees, investors and those in small business. Such things as bringing forward tax deductions or delaying the receipt of income within the rules can mean less tax this year. When it comes to superannuation, make sure you maximise the tax deduction this year or salary sacrifice the right amount so you get the best possible outcome and don’t end up with tax penalties.
You may have received a letter from the ATO entitled “Your participation in a franking credits arrangement” and wondering whether it applies to you and whether you need to do anything – such as amend your SMSF annual returns.
This letter has been prompted by the the previous Labor Government’s intention to close a loophole which enable an investor (via the assistance of their broker) to effectively obtain twice the amount of franking credits on the same parcel of shares.