Draft Legislation Covering Self Managed Super Funds Sees Standards Tightened for Investments in Collectibles and Personal Use Assets
Canberra, Australia (News4us.com) February 02, 2011
Self Managed Superannuation Funds (SMSF) will continue to be allowed to invest in collectibles and personal use assets like artwork or stamps, provided they are held in accordance with tightened legislative standards.
The Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten MP, today released draft legislation that will allow the Government to make regulations about how SMSFs can make, hold and realise investments in collectables and personal use assets.
“I’m pleased to be announcing this draft legislation, which delivers on an election commitment by allowing people with self-managed super funds to continue to invest in art and other personal use assets,” Mr Shorten said.
“However, 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.”
The new rules will ensure these investments do not give rise to a personal benefit for SMSF trustees, but rather are held for the purpose of providing retirement benefits.
Associated draft regulations that set out the rules that will apply to SMSF investments in collectables and personal use assets will be released for public comment following consultation with relevant stakeholders on their design.
This measure forms part of the Government’s ‘Stronger Super’ reform package. Further information on these reforms, as well as the draft Bill and associated explanatory material, is available as strongersuper.treasury.gov.au.
Interested parties are invited to make written submissions on the draft Bill.
Submissions may be lodged electronically or by post to:
Benefits and Regulation Unit
Personal and Retirement Income Division
PARKES ACT 2600
For enquiries, please call Louise Lilley (02) 6263 3327.
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