New regulations concerning collectables and personal use assets held by self managed super funds came into affect 1st July 2011.  In order to avoid committing an offence under the new regulations, SMSF trustees should ensure for all new acquisitions of collectables & personal use assets that they:

• Do not store the asset/s at the private residence of a member or related party;
• Keep a record of the reasons for the decision on where to appropriately store the asset/s
• Insure the asset/s in the fund’s name within 7 days of acquisition;
• Do not dispose of the asset to a related party at a price other than market value (as determined by a qualified independent valuer);
• Do not enter into a lease arrangement with a related party in relation to the asset/s

 In relation to collectables or personal use assets acquired prior to 1 July 2011, the new regulations will not apply until 1 July 2016.  All existing holdings of collectables or personal use assets must comply with the new regulations or be disposed of by 1 July 2016.