Australian tax office to get tough on art owned by super funds
Artworks owned by self-managed super funds (SMSF) must be insured, kept in storage, and not displayed at work or in the home according to rules by the Australian tax office governing collectibles. Previously, the tax office was lenient regarding breaches of the rules on SMSF artworks and other similar items, however, the five-year reprieve to become compliant with collectible law ends on 30 June. In line with the Australian Government's provision of tax breaks on retirement savings, the tax office states that SMSF artworks should produce income for retirement, not enhance current lifestyles. 



 

Do you have an artwork that is owned by your DIY super fund that is hanging on your wall or at your business premises?

If so, you had better get it down quickly, or risk a penalty from the Tax Office.

Paintings owned by a self-managed super fund need to either be in storage – like these Art Gallery of NSW paintings – or leased to a gallery. Credit: Dallas Kilponen

The rules over the treatment of art and other collectibles held by self-managed super funds are a little tricky to interpret and the Tax Office has been lenient on those making minor breaches.

But the Tax Office's reprieve on those unwittingly flaunting the rules comes to an end on June 30 this year.