http://www.superguide.com.au/comparing-super-funds/smsf-investment-diy-super-asset-types Only 0.1% of $$$ in SMSF in the above catagory... which contains Metal!! SMSF FTW Only 0.3% in overseas share... few! Maybe Australia is safe
http://www.superliving.com.au/storyview.asp?storyID=1028429 Can anyone think of a sensible use of the condition? I am not talking of anything stupid or irresponsible, but this 5% could be used for a here and now benefit like polar PV? Any other creative Ideas
It's dangerous to play around with in house assets. You may buy something that is at 5% now and if the values of your other assets drop your in-house is now more than 5% and you're in trouble.
Not more responsible for gains or losses. In reality it is a bit of a safety measure to ensure that as long as you can make an argument that the asset satisfies the sole purpose test then you can buy exotic assets as long as their value is under 5% you won't breach legislation and be considered non complying. Above I was talking about the value of the asset so I will use an example. Say you have $10,000 in cash and this is the total value of assets of the fund. You buy a piece of artwork for $500 and $9,500 worth of shares. Say in 6 months time the shares have gone down in value and you decide to sell the shares and hold the funds received in cash so you sell the shares and receive $5,000 in cash. You also make a contribution to the fund as rent paid for 'leasing' the artwork (satisfying the sole purpose test). At the end of the year your fund assets would be a piece of art worth $500 and just over $5,000 in cash (proceeds of sale, interest and rent on the artwork). The in-house assets are now more than 5% of the fund and you don't comply.
