Collectables and Personal Use Assets

Clients of ESUPERFUND are not allowed to invest in Collectables or Personal-use Assets unless the Collectables are Physical Metals. The rationale for disallowing these Investments is that there are onerous rules accompanying investing in Collectables, including the assets cannot be stored in the private residence of the Member or an associate of the Member, must not be available for the private use or benefit of the Trustees or related parties and must be insured in the name of the SMSF within 7 days of the assets being acquired. Determining whether the asset is used by a Fund Member or associate of a Fund member (which is complex to determine), whether the SMSF complies with all the other investment rules and restrictions is a difficult and time consuming process. This added level of complexity is outside the scope of our offering.

Definition of Collectables and Personal Use Assets

Collectables and personal use assets are:

  • Artwork (a painting, sculpture, drawing, engraving or photograph; a reproduction of such a thing; or property of a similar description or use);
  • Jewellery;
  • Antiques;
  • Artefacts;
  • Coins or medallions;
    • Coins and banknotes are collectables if their value exceeds their face value.
    • Bullion coins are collectables if their value exceeds their face value and they are traded at a price above the spot price of their metal contents.
  • Postage stamps or first day covers;
  • Rare folios, manuscripts or books;
  • Memorabilia;
  • Wine or spirits;
  • Motor vehicles and motorcycles;
  • Recreational boats;
  • Memberships of sporting or social clubs.

A full definition can be found on the ATO website here.