Here's a thought... if selling metal in a private sale from your SMSF, do the AUSTRAC rules for bullion dealers apply? I.e. if I sold some physical gold held in my SMSF for $11,000 cash to a private buyer, would I need to make a report to AUSTRAC on behalf of my fund? Similar question re selling $5,000+ worth of bullion - would my fund be required to follow "Know Your Customer" customer identification procedures? That's a bit dubious, expecting SMSF trustees (whether private or corporate) to hold and maintain personal identification documentation of someone just because your fund sold metal to them. Guess the question really is, "is a SMSF considered a 'reporting entity' by AUSTRAC?".
Disclaimer: I am not a lawyer. I am certainly not your lawyer. Seek professional advice if this is topic is an issue for you. Probably not. You're only a reporting entity if you're providing a designated service in the course of "carrying on a business". If you're "carrying on a business" your SMSF would likely be breaching the ATO's "sole purpose" test for SMSFs which are supposed to exclusively providing retirement benefits for its members and not carrying on a business. Realistically, you would deposit the cash into your SMSF's bank account and if it is more than $10,000 then they would report it to AUSTRAC under their reporting obligations. You may be required to provide documentation relating to the sale later if somebody asks you (which you should have anyway for your SMSF's annual audit) , but no, you probably don't have to register with AUSTRAC because otherwise everyone who bought or sold shares and real estate would have to register as well.
In a very short answer my personal opinion is no. As i am a trustee of the superfund not a bullion dealer. I would be thinking you would keep a transaction reciept with the details for your smsf reporting requirements in terms of the profit/loss of the trade. I like to go to the horses mouth in terms of the tax office site as it is my view that if you stuff it up a little when following their published rules as best you can you will not get your but fined off, and it will be close enough for the accountant/auditor to "sort out". link; http://www.ato.gov.au/superfunds/content.asp?doc=/content/00251857.htm&page=34#P846_50434 In terms of knowing your customer; from my point of view i just want to be able to prove it was not a family member and put me in conflict with the arms length rules. In terms of "is a smsf considered a reporting entity by austrac?" I dont know.
here is a link to what is a reporting entity but man what a crap description...stuff them im not..!! http://www.mallesons.com/publications/2008/Jul/9529362W.htm Edit..i just noticed this little gem in the top right corner of that linked page; Who does this affect? Any business that provides a financial, bullion or gambling service
