Hello Chasers,
Ever dreamed of owning a classic car or a shiny motorbike?
What if you could park it within your Self-Managed Super Fund (SMSF)?
Buckle up, because while it might sound like a fantastical road trip, it’s actually a possibility – with some key detours to navigate.
Many SMSF trustees may know the ATO allows investments in art and collectibles. But what about the purr of an engine or the gleam of chrome?
The good news is, SMSFs can indeed invest in motor vehicles, including cars and motorcycles. But before you hit the gas pedal on your investment strategy, be aware of the strict rules governing these “personal use assets.”
Parking Permits: Where Can Your Vehicle Rest?
Forget your private family residence!
Superannuation law prohibits storing vehicles in the homes of SMSF members or related parties. This includes your garage, driveway, or any other part of your personal dwelling.
But fear not, aspiring revheads!
There’s a pit stop solution: business premises owned by a related party. Think storage facilities, car parks, or garages specifically built for business purposes. Just remember, private residences are a no-go zone.
Taking it for a Spin? Not Just Yet!
Now, for the crucial caveat: SMSF trustees are strictly forbidden from driving the vehicle, even for a seemingly innocent maintenance errand like a polish and shine!
The same goes for restoration work.
But don’t worry, your trusty mechanic can still make house calls to keep your investment in tip-top shape.
Additional Roadblocks to Consider:
Collectible status: If your prized possession falls under the “collectible” category, leasing it to related parties is a no-no.
Insurance: Your SMSF must insure the vehicle within 7 days of acquisition, and the policy holder has to be the fund itself.
Selling to Related Parties: Thinking of passing your automotive gem to a family member? Be prepared for an arm’s-length transaction with a market valuation by a qualified professional and them also paying the relevant stamp duty and transfer fee on this valuation.
Documentation: Keep detailed records justifying the storage location and your investment decisions. These documents should be stored for at least a decade.
So, Can Your Dream Machine Join Your Super Family?
With careful planning and adherence to the rules, yes, your SMSF can become the proud owner of a car or motorcycle.
But remember, this investment comes with unique restrictions. You can admire it, you can maintain it, but taking it for a joyride is strictly off-limits until ownership is transferred to you or a family member.
Check out Episode 35 on The Chasers Channel podcast for more information.
Have a great day!
General advice disclaimer
The advice provided is general advice only as, in preparing it we did not take into account your investment objectives, financial situation or particular needs. Before making an investment decision on the basis of this advice, you should consider how appropriate the advice is to your particular investment needs, and objectives. You should also consider the relevant Product Disclosure Statement before making any decision relating to a financial product. Only financial planning advice provided by Ceebeks Financial Solutions is associated with InterPrac Financial Planning Pty Ltd ASFL 246638.
Christopher Beks (Authorised Representative no. 231937) is a director of Ceebeks Financial Solutions (Authorised Representative no. 344518) and an Authorised Representative of InterPrac Financial Planning Pty Ltd ASFL 246638 and is authorised to provide personal financial advice. Chris Beks operates under Beks and Associates Pty Ltd, Corporate Authorised Representative No. 344518.
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