Services Superannuation Funds
Many investors consider fine art as part of their Superannuation Fund assets, so the purchase of investment quality art needs great consideration and advice from a Professional Art Dealer and your Accountant.
Director Beverly Knight can provide advice when considering investing in art, such as examples of artists or works which would satisfy investment potential in the future. Beverly has 25 years of market fluctuation experience to assist in planning the gains of such purchases in line with Superannuation Fund criteria and general investment planning and collecting. Beverly is a Commonwealth of Australia valuer for Indigenous art. It is imperative artworks in superannuation funds are valued by an industry expert.
There have been strict guidelines set by the Australian Taxation Office as requirements for the consideration of art as an asset, therefore it is crucial that a SMSF Trustee discusses with their accountant or financial advisor the viability of art as an asset in a Super Fund. There are significant changes to artworks and superfunds for SMSF's from 1st July 2016.
A few basic points when considering purchasing art for your DIY Super Fund or investment collection once you have consulted your accountant:
- Must fit into the Super Fund’s investment strategy
- The artwork must be seen as an investment
- The artwork must be properly insured, independently valued by industry expert
- The Trustees must show diligence when purchasing and selling
- Must be an arms-length transaction
- Preferably be from a reputable fine art dealer
- Must be stored, and not able to be installed in any premise related to the Trustees of the Fund.
By law, Trustees must regularly attend to updated valuations in respect of the assets of the SMSF. This is a service Alcaston Gallery can provide on request for a fee paid by the SMSF.
For discussion on Superannuation Fund investment art or future planning of art purchases please contact Beverly Knight at Alcaston Gallery.