Check a collectable held by a self-managed fund
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the asset record, list the item, the date the fund acquired it, where it is stored, whether it is leased or used, the insurance policy, and the date the policy started. Do not decide that the holding is permitted, and do not write the storage record.
- What the lawyer must review
- The lawyer decides whether the holding meets the rules and writes the storage record. The Tax Office states that a collectable or personal-use asset of a self-managed fund, such as artwork, a boat, jewellery, a vintage car or wine, must be held for genuine retirement purposes and not for a present-day benefit. It cannot be used by or leased to a related party. A lease to an unrelated party must be at arm's length. It cannot be stored or displayed in a private residence of a related party, including the land and the other buildings on that land. It cannot be displayed in other premises of a related party. It may be stored there if it is not visible to clients and employees. The fund keeps a written record of the reason for the storage decision. The item is insured within 7 days of acquisition, in the fund's name as owner and beneficiary. A sale to a related party must be at market value determined by a qualified independent valuer. Natural diamonds held loose are not collectables. A diamond that is mounted is not held loose. The lawyer does not treat a recommendation about insurance of loose diamonds as a rule that applies to them.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the asset record, list the item, the date the fund acquired it, where it is stored, whether it is leased or used, the insurance policy, and the date the policy started. Do not decide that the holding is permitted, and do not write the storage record. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Count 7 days from acquisition to the start of a policy that names the fund as owner and beneficiary.
- Check the storage address against the residences and other premises of related parties, including sheds and garages on a residence.
- Confirm the written reason for the storage place is written by the lawyer, and that a loose diamond is not put through the collectable rules.
Sources
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.