Collectibles – time is running out
If your SMSF has collectibles that were purchased before 1st July 2011, time is running out to make sure these assets comply with the new requirements. The new rules come into play on the 1st July 2016.
The new rules for collectibles are;
• Not to be leased or used by a related party
• Can’t be stored in a private residence of a related party
• Decisions on the storage of the asset must be documented and the report must be signed and kept
• Collectibles to be insured under the SMSF name.
Asset considered collectibles include but not limited to artwork, classic vehicles, antiques, jewellery and wine.
If your SMSF does own collectibles it is important to take action before the deadline. You should consider reviewing your current leasing arrangements, make decisions about storage and arranging the appropriate insurance needs.
If you are considering disposing of the collectible you are able to do so without a qualified independent valuation if the disposal takes place before the 1st July 2016. The transaction must be on arm’s length terms and can be transferred to a related party. Any disposals on or after the 1st July 2016 are required to get an independent valuation prepared.
If your SMSF has collectibles and you need more information on the new rules please feel free to call;
Martin van der Saag
Director
T: 02 9984 7774
E: martinv@nac.com.au
Cayle Petritsch
SMSF Specialist Advisor
T: 02 9984 7774
E: caylep@nac.com.au
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