Sent: 24-05-2011 09:14:10
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SMSFs, Artwork & Collectables
The Government has released draft regulations dealing with artwork and collectables ('A&C') owned by Self Managed Super Funds.
This is the first recommendation out of the Cooper Review to be almost finalised. (The Cooper Review actually recommended that these types of assets be banned but both the Government and Opposition rejected these suggestions.) The remainder of the Cooper Review's recommendations that have been accepted by the Government will be dealt with over the next couple of years.
These draft regs look fairly well drafted and it would be surprising if there was too much variance from what has been released when they are ultimately finalised.
The regulations apply to all new investments in A&C made after June 2011. For such investments held by a super fund before July 2011 the new rules will not have to be complied with until after June 2016 - that is, about five years after commencement.
The major issue with A&C is the sole purpose test and potentially breaching it by gaining a current day benefit.
My DIY Super article in The Australian's Wealth section about these new rules will be published on 1 June.
I'll be adding some material about these draft regulations in my book.
Please consider purchasing a copy of this book "A How To Book Of Self Managed Super Funds". You can look at the contents page at the following link: http://www.atcbiz.com.au/r.php?r=0mjd6ne
The 5th edition has just been released.
For details of the changes made from version 4 to version 5 visit: http://www.atcbiz.com.au/r.php?r=1nhgpm2
As you'll see from the list there have been many changes.
Two purchase options are available - once only subscription - $55 inc GST - or an annual subscription will gives you access to all the updates made throughout the year ($120 inc GST). The book can be purchased at the following link: http://www.atcbiz.com.au/r.php?r=5a4agqb
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