Collectables Investment Rules now in Force

The regulations implementing the Government’s changes to the acquisition and holding rules relating to collectables and personal use assets are now in force.  The new rules are set out in Superannuation Industry (Supervision) Amendment Regulations 2011 (No 2) and apply on and from 1 July 2011.

Certain changes have been made to the rules as enacted compared to the draft rules released for comment.

The changes are:

• Bank notes are now included as a collectable (the draft only referred to “coins or medallions”);
• Spirits are now included as a collectable (the draft only referred to “wine”);
• Motor vehicles have replaced “cars”; and
• The restriction on related parties using any of the listed items previously only applied if the listed item was jewellery, car, recreational boat or membership of a sporting or social club.  Now the restriction applies to all listed items.

Importantly the new rules do not apply until 1 July 2016 for listed items held by SMSFs on 30 June 2011.  However, the new rules will immediately apply to any listed item acquired by an SMSF on or after 1 July 2011.