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Bottle of White, Bottle of Red… Maybe a Monet Instead? Deadline Looming for SMSF Collectables

By Joel Curry

Do any of your clients’ SMSFs contain collectable and personal use assets listed in Regulation 13.18AA?

Yes?  Clients need to take action by 30 June 2016 to comply with the new rules.  Strict fines and penalties will apply if they fall foul of the specified requirements.

We covered the new rules in detail in our previous blog and we now provide a useful checklist below for you.

Checklist for SMSF Collectables and Personal Use Assets held prior to 1 July 2011.

  Action / Comment Action Complete  (Y / N or N/A)
Step 1

Does the SMSF contain an asset caught by Regulation 13.18AA?

 

Review ATO guidelines for further guidance.

If yes proceed to…
Step 2

Will the Fund dispose of  the asset before 30 June 2016?

 

 

If sold to a related party an independent valuation must be obtained to determine transfer value.

If the asset will be kept…
Step 3

Ensure asset is not leased to, or used, by a related party.

Step 4

The asset is not to be stored in a private residence of a related party.

Step 5

A written decision must be made as to where the asset is being stored.

Step 6

Insurance must be held in the name of the SMSF covering the asset.

 

 

Insurance cover must be obtained by 30 June 2016 or within 7 days of ownership.

Insurance Cover

All SMSFs with collectables need to seek insurance advice prior to 30 June to comply with the new regulations.

We can recommend a local business, R&M Insurance Brokers. We have worked closely with R&M Insurance Brokers to ensure that their SMSF insurance offering meets the requirements of the new regulation. Their SMSF insurance specialist, Jared Gilkison, can be contacted on (02) 49624 888 or by email.

 

TriSuper Auditors are here to assist you with transitioning your clients to the new requirements and with 30 June approaching fast,  are happy to take your call with any questions you have on a client by client basis.

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