If you have a self managed super fund then you may recall that back in July 2011 new rules were introduced into the Superannuation Industry Act that affected investments in collectables and personal use assets.

The roles took effect on 1 July 2011 and apply to all collectable and personal use asset investments made by SMSF’s on or after this date. So, if you are an SMSF holder you need to look at your fund and if it held an investment in a collectable or personal use asset prior to July 1 2011 it has until 1 July 2016 to comply with the rules. The long transitional period has been designed to give SMSF trustees enough time to comply as penalties will be imposed on those who do not.

Forgot what these new rules are? As stated on the ATO website the regulations require:

• collectables and personal use assets must not be leased to any related party of the funds
• collectables and personal use assets must not be stored or displayed in the private residence of any related party of the fund
• trustees must make a written record of the reasons for the decisions on where to store the collectables and personal use assets and keep the record for 10 years
• trustees must ensure that collectables and personal use assets (other than a membership of a sporting or social club) are insured in the name of the fund within seven days of acquisition
• collectables and personal use assets cannot be used by any related party of the fund
• the transfer of ownership of collectables and personal use assets to a related party of the self-managed super fund must be done at a market price determined by a qualified independent valuer.