Checklist of Assets that may be Acquired
Trustees of a superannuation fund need to ensure that any investment or activity by the fund complies with the sole purpose test. Broadly, the sole purpose test requires a fund to be established for the sole purpose of providing benefits to its members in retirement.
The superannuation legislation contains investment restrictions. Complying with the investment rules is crucial to achieving and maintaining the status of a complying superannuation fund and thereby qualifying for income tax concessions.
The checklist below sets out common assets which trustees may or may not acquire.
Asset type |
Permitted |
Business assets |
Businesses |
No |
Business plant and equipment |
No |
Cray pots |
No |
Franchise rights |
No |
Hobby farms |
No |
Taxi licences |
No |
Water rights |
No |
Financial investments and securities |
Bank deposits acquired at market value |
Yes |
Listed securities acquired at market value |
Yes |
Life insurance policies |
Acquired at market value and the in-house asset rule is not exceeded1 |
Yes |
Other assets |
Assets acquired under an SMSF merger |
Yes |
Assets acquired at market value where the Tax Office gives written notice that the assets are not in-house assets |
Yes |
Personal assets |
Artwork |
No |
Cars, including antique cars |
No |
Golf club memberships |
No |
Other collectables (for examples, jewellery, stamp collections and wine) |
No |
