Unlike retail or industry super funds, SMSF’s are able to invest in alternative asset classes directly. These can be collectibles (such as antiques and artwork), wine, precious gems, classic cars and crypto currencies. But there are rules so it is very important to get it right.
When a fund invests in any asset it is vital that the ownership clearly states the trustees and the fund name correctly to comply with the super rules. So when you are getting ready to purchase these types of assets make sure you set it up right.
For example, if you are looking to invest in crypto currencies (either directly or through a broker) you will need to open the account or wallet in the name of the super fund. If you are using a broker they will usually require a copy of the trust deed so have this ready.
You will also need to obtain statements confirming the value of the investment especially at 30 June of each financial year. The auditor will require this to confirm ownership and valuation. With some crypto currencies you can only obtain these statements up to 12 months prior so ensure you regular print copies and store them away safely. And when you decide to sell your crypto currency remember to deposit the proceeds into the bank account of the super fund.
You may also be looking to invest your SMSF money in other types of non-financial assets such as memorabilia, motor vehicles, jewellery and artwork. There are strict rules around what needs to be done (such as having the asset insured) so check out our blog below here for more details.
Some SMSF fund administrators do not allow you to invest in the above asset classes so make sure you find this out before choosing your SMSF professional. Here at Your Super Specialist we are more than happy for the SMSF trustees to invest in all asset types that they are interested in as long as the super laws allow it. Just make sure the investment type is within your investment strategy. Go to our resource centre for more information on investment strategies https://www.yoursuperspecialist.com.au/resource-centre/glossary/
This information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs.