While all super funds are required to invest solely for the purpose of saving for retirement or protecting beneficiaries on a member’s death, this doesn’t mean they can’t invest in assets that might normally be bought for personal enjoyment.
For example, some funds have substantial art collections, hold rare
coins or even vintage cars.
To make sure these are being bought for the purpose of adding to retirement savings, there are special rules, additional documentation and insurance requirements that apply to SMSFs that hold these types of assets. To illustrate, they cannot be:
- leased to a related party
- stored at the residence of a related party
- used by a related party
Collectibles and personal use assets are broadly defined as including anything that would normally be purchased for personal enjoyment, in spite of the fact that in this case, they were purchased to enhance the members’ retirement savings.