Collectables allowed
in SMSFs
The government has dismissed a Cooper review finding that recommended a ban
on investing in collectables within SMSFs.
The government will allow
self-managed superannuation funds (SMSFs) to invest in collectables under
new standards.
The Cooper review had recommended
that SMSFs give up existing investments in collectables.
If re-elected, SMSFs will be able to
continue to invest in personal use and collectable assets, provided they are
held according to new legislative standards that will ensure the assets do
not give rise to personal benefit and are held for the purposes of providing
retirement benefits, the government said in a statement.
Existing assets that cannot meet
these rules must be sold within five years, the government said.
"Labor's approach is broadly in line
with the best practice artwork investing guidelines that were recently
released by the Self-Managed Super Fund Professionals' Association of
Australia (SPAA) and the Australian Artists Association," the statement
said. |
SPAA chief executive
Andrea Slattery "warmly" welcomed the government's announcement.
"We strongly believe collectables, including artwork, are a suitable
investment option for many SMSF trustees, and that SMSF trustees should be
able to continue to choose these investments for their funds if they deem
them appropriate," Slattery said.
"Industry adoption of the SPAA and the
Australian Artists Association guidelines on artwork in SMSFs will clarify
trustee and auditor obligations by setting a standard for effective storage,
documentation and valuation of collectables in SMSFs."
A re-elected Gillard Labor government will consult with industry and
community groups on the details of the legislation before implementing these
new standards.
Christine St Anne Fri 30 Jul 2010 -
Investor Daily
|
