SMSF collectibles and personal-use assets: the storage, insurance and lease rules

Collectibles and personal-use assets are allowed in an Australian SMSF, but they sit under their own regulation — regulation 13.18AA of the Superannuation Industry (Supervision) Regulations 1994. The rules were introduced in 2011 to stop trustees from getting present-day enjoyment out of fund assets. If you want the fund to hold artwork, wine, jewellery, antiques, coins, banknotes, stamps, rare books, sporting memorabilia, classic cars or recreational boats, every one of the following requirements applies.

What counts as a collectible or personal-use asset?

• Artwork (paintings, sculptures, drawings, engravings, photographs)
• Jewellery, antiques, artefacts, coins, medallions and banknotes
• Postage stamps and first-day covers
• Rare folios, manuscripts and books
• Memorabilia, wine and spirits
• Motor vehicles, recreational boats and memberships of sporting/social clubs

Rule 1 — Cannot be used by, or leased to, a related party

The asset cannot be used by a member, relative, related trust, or related company. A member cannot drive the classic car, hang the painting in their lounge room, wear the jewellery, or drink the wine. It also cannot be leased to a related party — even on commercial terms. The only allowed users/lessees are genuinely unrelated parties (e.g. a corporate art gallery).

Rule 2 — Cannot be stored in a member's private residence

Storage is the rule that catches most trustees out. The asset cannot be stored in the private residence of any related party — and 'private residence' includes the garage, the shed, and any structure on the residential land. A bank vault, professional art storage facility, or commercial wine cellar is fine. A business premises owned by a member is also allowed, provided the asset is not on display.

Rule 3 — Storage decision must be documented

Trustees must make and document a written decision about where each collectible will be stored, before it is acquired. The minute should record the address, the reason that location was chosen, and the storage cost. The minute must be kept for at least 10 years and produced at every audit.

Rule 4 — Must be insured in the fund's name within 7 days

Every collectible must be insured in the SMSF's own name within 7 days of acquisition. Adding the asset to a member's personal home and contents policy does not satisfy the rule — even if the SMSF reimburses the premium. Most insurers offer a specific SMSF collectibles policy.

Rule 5 — Disposal to a related party requires a market valuation

If the fund sells the collectible to a related party at any point, the price must be supported by a qualified independent valuation. Disposals to unrelated parties (auction, dealer, private sale) do not need a formal valuation but should still be at arm's length.

Penalties for getting it wrong

A breach of regulation 13.18AA is reportable by the auditor and carries an administrative penalty of 10 penalty units per trustee (approximately $3,300 each in 2026). Worse, ongoing use by a related party can constitute an in-house asset breach and trigger income to be taxed as NALI. Many SMSFs that held collectibles before 2011 have since sold them simply because the compliance overhead outweighed the investment merit.

Sources: Superannuation Industry (Supervision) Regulations 1994, regulation 13.18AA; Australian Taxation Office — Collectables and personal use assets (ato.gov.au).