SMSFs should not be banned from investing in art, says SPAA

In response to a Cooper Review recommendation that self-managed super fund (SMSF) professionals be banned from investing in art and collectables, the Self-Managed Super Fund Professionals' Association of Australia (SPAA) has stated these investments are a viable investment option.

SPAA, in conjunction with the Australian Artists Association, has released best practice artwork investment guidelines for SMSF advisers and auditors, which has been submitted to the Federal Government.

"Artwork is a viable investment option for many SMSF trustees, therefore SPAA urges caution on proposed Cooper Panel measures which seek to restrict how self-managed super fund assets can be invested," said SPAA chief executive Andrea Slattery.

"The practical reality is very few SMSFs hold artworks or other collectables and those that do normally have some expertise in relation to that particular investment class."

SMSFs are able to invest in artworks and other collectables provided they fall within the investment strategy set by fund trustees and meet the superannuation sole purpose test and in-house asset rules.

"SPAA believes that strengthening guidelines on how the assets are kept, rather than preventing SMSFs from holding artworks and other collectables, is the best way forward," Slattery said.

The guideline covers areas such as valuation, purchasing, storage and documentation of artworks, as well as risk and return. SPAA stated it would be modified to apply across all collectables.