SPAA supports SMSF draft on art and collectibles
The Self-Managed Super Fund Professionals’ Association (SPAA) has welcomed the government’s draft legislation, which allows self-managed super funds (SMSFs) to continue to invest in artwork and collectables.
The draft legislation, released yesterday by the Minister for Financial Services, Bill Shorten, amends the Superannuation Industry Supervision Act and outlines regulations about how SMSFs can make, hold and realise those investments — including personal use assets such as paintings and stamps.
“We are tightening the rules, so people can’t claim they are, for example, ‘collecting’ high-end sports cars, paying reduced tax and then actually driving around in those vehicles,” Shorten said.
SPAA chair Sharyn Long said the draft legislation was “the first concrete step by the Government in keeping its promise to SMSF investors that they continue to be allowed to invest in artwork and collectibles.”
Originally, the Cooper Review recommended that such assets be banned from super funds, concluding that artwork and collectibles lend themselves to personal enjoyment and current day benefits.
However, in its response to the recommendation, the Government said it would allow the investments, albeit with tightened regulation.
The associated draft regulations will be released for public comment following consultation with relevant stakeholders on their design.
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