Latest News

Hot Issues
spacer
State and Federal COVID-19 support --- January - 2022
spacer
Beware section 99B
spacer
ATO provides further clarity on DIN process
spacer
Unpaid client invoices placing greater pressure on SMEs
spacer
10 top global corporations since 1998
spacer
Increase in the number of SMSF members
spacer
Single Touch Payroll (STP) – Phase 2
spacer
ATO reiterates tax system incentives
spacer
Our 2021 Advent Calendar.
spacer
ATO flags focus areas for combating $33.5bn ‘tax gap’
spacer
Business Resources - Grants, Assistance, Resources and more.
spacer
Employee Christmas Parties and Gifts – Any FBT?
spacer
FBT – Christmas Parties and Taxi Fares
spacer
How the best firms are supporting the mental health of their employees
spacer
Asian Economies (1960 - 2020)
spacer
Making the festive season less taxing
spacer
Why more Millennials are turning to SMSFs
spacer
Company directors must register - all you need to know
spacer
Hardship priority processing of tax refunds
spacer
Business valuations: Tips, tricks and traps
spacer
Government moves to scrap SG $450 threshold
spacer
World's most productive countries
spacer
Superannuation changes - Superannuation guarantee (SG)
spacer
Unused Super Contributions
spacer
Main residence exemption myths and misconceptions
Article archive
spacer
Quarter 4 October - December 2021
spacer
Quarter 3 July - September 2021
spacer
Quarter 2 April - June 2021
spacer
Quarter 1 January - March 2021
spacer
Quarter 4 October - December 2020
spacer
Quarter 3 July - September 2020
spacer
Quarter 2 April - June 2020
spacer
Quarter 1 January - March 2020
spacer
Quarter 4 October - December 2019
spacer
Quarter 3 July - September 2019
spacer
Quarter 2 April - June 2019
spacer
Quarter 1 January - March 2019
spacer
Quarter 4 October - December 2018
spacer
Quarter 3 July - September 2018
spacer
Quarter 2 April - June 2018
spacer
Quarter 1 January - March 2018
spacer
Quarter 4 October - December 2017
spacer
Quarter 3 July - September 2017
spacer
Quarter 2 April - June 2017
spacer
Quarter 1 January - March 2017
spacer
Quarter 4 October - December 2016
spacer
Quarter 3 July - September 2016
spacer
Quarter 2 April - June 2016
spacer
Quarter 1 January - March 2016
spacer
Quarter 4 October - December 2015
spacer
Quarter 3 July - September 2015
spacer
Quarter 2 April - June 2015
spacer
Quarter 1 January - March 2015
spacer
Quarter 4 October - December 2014
Quarter 2 of, 2016 archive
spacer
Reminder – Salary and Wages PAYG Shortfall
spacer
$20,000 Asset Write Off Reminder
spacer
Danger for buyers of Australian property of $2 million plus
spacer
Budget 2016-17
spacer
FBT Time
spacer
Fringe Benefits Tax – Company Holiday Home
spacer
Fringe Benefits Tax – Nil
spacer
Estate Planning - early inheritance
spacer
ATO issues SMSF tax warning
spacer
ATO seeks to dispel LRBA panic
spacer
Financial tools your family and friends can use.
spacer
$20,000 Asset Write Off Reminder
spacer
Tax office issues warning on imminent rule change
spacer
Age Pension means-test prevents rational decision-making
spacer
Locking Up Bank Accounts
spacer
ATO figures show property investors missing out on tax breaks
Tax office issues warning on imminent rule change

 

The ATO has issued a stern warning to SMSFs with collectible assets ahead of rule changes that come into effect on 1 July this year.

       

Following the 2010 Cooper Review, the rules relating to ownership of collectibles in an SMSF have been tightened.

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.

Speaking at the SMSF Association’s national conference in Adelaide last week, the ATO’s Kasey Macfarlane said the commissioner is not going to be sympathetic to those who have not met the new standards.

She noted there has been a five-year transitional period, which has given SMSF trustees ample opportunity to reassess or restructure their collectibles holdings.

The ATO’s advanced levels of data intelligence means trustees are more likely to get caught under these new rules if they are non-complying, Ms Macfarlane said.

She also added that it’s worth reviewing whether it’s worthwhile for your clients to be holding collectibles in their SMSF given the additional costs and restrictions under the new rules.

The SMSF Association’s Graeme Colley previously told SMSF Adviser that considering the recommendation from the Cooper Review was to do away with SMSFs investing in collectibles and artworks, it would be reasonable to expect that there will be no extension to the transitional period for those artworks and collectibles held by funds as at 30 June 2011.

“While this may create some issues for some artworks and collectibles in relation to insurance and storage, trustees have had many years to make adjustments to the fund investments,” Mr Colley said.

Mr Colley further noted that the holdings of artworks and collectibles by SMSFs have decreased from a peak of $731 million in March 2012 to the June 2015 level of $389 million.

 

MIRANDA BROWNLEE & KATARINA TAURIAN
Tuesday, 23 February 2016
accountantsdaily.com.au

 

© O'Brien and Partners 2011 - All Rights Reserved | 91 Station Street, Malvern VIC 3144 | Tel: 03 9509 3911 | Fax: 03 9509 3922