Collectible Investments in a Self Managed Superannuation Fund
SMSF trustees need to be aware that the rules on collectables have changed, including adding alcoholic spirits and banknotes to the list of allowable investments. While wine and coins are already considered acceptable investments, the list has been expanded to include banknotes and alcoholic spirits.
All collectables, wiithin a SMSF must be insured within seven days of being acquired, plus there is a total restriction on SMSFs releasing collectables to a related party or storing them in a private residence of someone related to the trustee. Trustees are liiable for fines of $1,100 each for any breach of the new rules.
Existing collectibles held at 30 June, 2011 are required to meet the new rules by 2016.
