Powered by MOMENTUM MEDIA
subscribe to our newsletter sign up

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Trustees warned about looming penalty threat

In a note to SMSF trustees, the ATO has again reiterated that “time is running out” ahead of the approaching deadline for collectables and personal use assets, warning penalties will apply for those who are not compliant.

From 1 July 2011, investments in collectables and personal use assets have been subject to strict rules under regulation 13.18AA of the SISR. Investments held before 1 July 2011 have until 1 July 2016 to comply with the rules.

Under the new rules, there are a series of investment standards that need to be met by the SMSF holding the collectibles, including that the asset cannot be stored in a private residence of a related party. In addition, there must be a documented decision about asset storage.

Most significantly, the collectible must be insured in the fund’s name within seven days of the SMSF acquiring it.

Advertisement
Advertisement

“If you are considering disposing of these items, they can be transferred to a related party without a qualified independent valuation, but only if the transfer takes place before 1 July 2016 and the transaction is made on arm’s length terms,” the ATO said.

“Trustees have had since July 2011 to make arrangements, so we expect you will have ensured the requirements are met before the deadline. If this isn't the case, you need to take steps now as there are penalties for breaking the rules,” the ATO added.

 

Trustees warned about looming penalty threat
nestegg logo
subscribe to our newsletter sign up
FROM THE WEB
Recommended by Spike Native Network
Anonymous - This is nonsense. The dividend imputation and CGT changes will have pervasive effects.....
Peter Stewart - Perhaps the above statement about wealth tied up in the family home may lead to greater use of the Pension Loan Scheme post the 1st July new launch....
TRC - So as Shortons Nett wealth is 61 million, I would imagine he would not be happy about this either as it will hit him too being the top end of town and all......
Anonymous - My 94 y.o. mother is a self funded retiree and never has had any superannuation. Fully franked dividends account for 99% of her $41,000 taxable.......