02 Feb 11 SMSFs' investment in collectibles and personal use assets - draft legislation released
In media release No 2011/022, issued 1 February 2011, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, announced the release of 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. 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," Mr Shorten said.
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.
The closing date for submissions is 15 February 2011.