9th July 2010
Art and your SMSF

The Self Managed Super Funds Professionals Association (SPAA) and the Australian
Artists Association (AAA) have today released best practice artwork investing guidelines for SMSF
advisers and auditors for SMSFs investing in artworks.
The guideline will be submitted to the Federal Government in response to an early Cooper Panel (review
into the governance, efficiency, structure and operation of the super system) recommendation that
SMSFs be banned from investing in these assets as well as other collectables. The Cooper Panel is set to
deliver its final report to the Government on 30 June.
The guideline, drafted by the Australian Artists Association with the assistance of SPAA, will form part of
the curriculum for the SPAA Specialist Adviser (SSA) and SPAA Specialist Auditor (SSAud) accreditation,
which promotes high professional standards across the SMSF sector.
“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 Andrea Slattery, CEO of SPAA.
“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 have been able to invest in artworks and other collectables provided they fell within the
investment strategy set by fund trustees and met 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. SPAA was very pleased to work
with the Australian Artists Association on a best practice guideline which covers matters such as the
storage, valuation and documentation of works of art, to be used by SMSF advisers,” Ms Slattery said.
Tom Lowenstein, Executive Director of The Australian Artists Association, said the AAA was pleased to
work with SPAA on the guidelines and hoped the joint arts and superannuation industry initiative would
support the case for keeping artworks as a permitted investment for superannuation funds.
“There are established norms in the art world for how works of art should be treated for market purposes,
which can and should be extended to works of art held in SMSFs. We believe SMSF investors should be
able to continue owning works of art in their self managed superannuation fund to benefit from them in
retirement, whilst also benefiting Australian artists,” Mr Lowenstein said.
The guideline will be modified to apply across all collectables, not just artworks.

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