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Nov 02, 2022

Collectibles & Insurance

in SMSF Technical Forum

Hi,

Have a fund that acquired collectibles and did not insure these within the 7 day time frame as required.

The collectibles are > $30k so I am suggesting to therefore qualify Part B on Reg 13.18AA and issue an ACR as a result.

What happens in the following year - is there another qualification if they do not dispose of the artworks? As they can never really fix the original issue. Or is the matter dealt with in the first instance issuing a qualification?

1 answer0 replies

Comments (1)

THE AUDITORS INSTITUTE

Nov 03, 2022

Hi T

My view is that the breach happened in the year of purchase and it would be qualified on in that year (Part B) & an ACR lodged re that year.

There is no requirement to issue a qualification or lodge an ACR in a later year re this breach.

The SIS regulations at 13.18AA do not require the artwork to be disposed of if not insured within 7 days of purchase.

Thanks

SMSF AAA