The Australian Institute of Superannuation Trustees (AIST) has used its submission on the draft regulations for collectibles and personal use assets in self-managed super funds (SMSFs) to ask for further tightening of the rules in the interests of all superannuation fund members.
In particular, the association wished to see assets that were similar to those commonly accepted, but not included in the list, brought under regulation by a ‘capture-all’ subsection that had been left out of draft regulations.
The AIST also said there were still loopholes in the legislation that it would like to see closed, including the ban on leases to related parties.
The association wrote in its submission that the regulations did not go far enough, and that it would like to see further bans on sub-leases to prevent related parties getting around the legislation.
“Furthermore, we believe that even if these assets were being sub-let legitimately to non-related parties, such a ban would assist in the prevention of loss, theft or damage,” the submission said.
The AIST also suggested the ban on the storage of items by a related party was too prescriptive. It said that rather than using the term ‘private residence’, it should be substituted with ‘any premises owned by’ to prevent circumvention of the legislation.
Furthermore, the AIST said it strongly supported the proposal requiring items to be insured, although felt it was unfair to suggest trustees should be liable in the instance that they are unable to insure them in the given timeframe of seven days through no fault of their own.
It said trustees should not be blamed for delays in processing by brokers, underwriters or third parties and should only be penalised if an application had not been made in the timeframe.
