02 9683 5999The legislation for Superannuation Funds holding collectables and personal use assets such as artwork, coin collections and motor vehicles has changed from 1 July 2011.
Under the new rules if a super fund holds a collectable it must:
Not enter into a lease agreement for the collectable with a related party
- Not be stored in the private residence of a related party
- Document the decision in relation to storing a collectable
- Have an insurance policy in the name of super fund
- Not make the item available for use for any related party
- Acquire an independent valuation prior to the transfer of a collectable to a related party
Any collectables held by a fund at 30 June 2011 are not subject to these new rules until 1 July 2016 allowing trustees a five year transition period to correct their collectable investments. Any transfer of a pre-2011 collectable asset to a related party is required to be done on a commercial arms length basis however a Trustee valuation is sufficient.
