Buying PM under SMSF - requirements to remain compliant with ATO

XB said:
boston said:
It must be remembered that, in many cases, the ATO 'rules' are to satisfy their own bureaucratic procedures and bear little resemblance to the actual law ie not legal or binding.
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Interestingly, the law itself (regulation 13.18AA) simply refers to "coins, medallions and banknotes" as being collectables - it is in the interpretation documents that coins "trading above face value" are said to be treated as collectables ......
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Whilst I may be mistaken, and I stand to be corrected, I think you will find that regulation 13.18AA is not law.
 
oh, and another thing. When you do the list that you submit showing what assets you hold, count everthing up and just put one line for silver...and 1 line for gold etc.

don't go
1x pm 10oz bar
1x southercross 10oz bar
20x 2009 1oz kooks
etc etc

keep it SIMPLE:
40oz Silver
It's all bullion.....trust me...keep it simple.
My fund got compliant and I must have 10 different types of silver, bars/coins. But my holdings just state it has XXX oz silver..thats it. nice and simple.
 
Elemental said:
This is a very complicated issue with meanings drawn from differnent acts. My personal feeling is that bullion coins are not collectibles. The fact that they trade above their face value is not the determining factor. From memory there is a section in the GST act (it may be a differnent act) that talks about whether the coin trades as "a function of spot" not above (or below) spot.

That is, when purchased it may have cost x + spot. As long as when it is sold you would get x + spot then the coin trades as a function of spot. The overall 'spirit' of the legislation is that they are trying to class numismatic coins as collictibles and have the collectible rules apply to those. IMO the intention of the legislation is not to catch bullion coins with a face value but rather numis stuff.
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See the sticky on GST http://forums.silverstackers.com/to...-tax-gst-on-precious-metals-in-australia.html
 
boston said:
XB said:
boston said:
It must be remembered that, in many cases, the ATO 'rules' are to satisfy their own bureaucratic procedures and bear little resemblance to the actual law ie not legal or binding.
Click to expand...
Interestingly, the law itself (regulation 13.18AA) simply refers to "coins, medallions and banknotes" as being collectables - it is in the interpretation documents that coins "trading above face value" are said to be treated as collectables ......
Click to expand...
Whilst I may be mistaken, and I stand to be corrected, I think you will find that regulation 13.18AA is not law.
Click to expand...
You are sorta correct ... It is a regulation made under the Act, so it has the force of the Act even though it's not IN the Act.... it's made pursuant to the Law with the force of the law. But it's not a Law, it's a Regulation. :lol:
 
XB said:
You are sorta correct ... It is a regulation made under the Act, so it has the force of the Act even though it's not IN the Act.... it's made pursuant to the Law with the force of the law. But it's not a Law, it's a Regulation. :lol:
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If it is not law, then it could be argued, that there is no legal compulsion for the SMSF to comply with the ATO's advisory regulation.
 
Guys.... Sit back and relax....

Buying bullion has no GST. Hence I don't think it's not a collectible item. ATO only worry if you pay CGT when selling your bullion at higher the price.

The fund is responsible to its beneficiaries, in this case, it's you and maybe your partner, too. As long as you don't use your superfund for current personal benefit, ATO wouldn't care too much.

Your auditor/accountant wont even bother to see your bullion collection each year, why ATO bother how you store? ATO has too many staff?
 
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