Owning Gold and Precious Metals in an SMSF
If you are interested in holding gold, silver or other bullion in an SMSF, this blog covers a few points of interest.
Rules for owning bullion in an SMSF
- Needs to be included in the investment strategy
- Needs to be purchased in the name of the SMSF
- Needs to be insured under the name of the SMSF within 7 days of purchase
- Needs to be stored securely and seperate from personal items
- Need to provide adequate reporting of transactions
- Need to provide evidence of holdings at the end of each financial year.
One way to satisfy these rules is to have a qualified custodian securely store and insure the bullion. Please ask to confirm your provider has storage solutions that satisfy the SMSF rules. Storage and insurance costs are a tax deduction for the SMSF.
Each buy or sell order will come with a Trade Confirmation stating the following…
- The name of the account (make sure this the name of your SMSF)
- Whether the transaction was a buy or sell,
- The spot price (price per ounce)
- The weight traded
- The value of the trade
At the end of the financial year, your dealer/custodian will issue an EOFY Account Statement stating the following…
- The name of the account (again make sure this the name of your SMSF)
- Holdings of the account
- Estimated value of holdings
- Transaction list for the year
- Storage fees
We will require all the Trade Confirmations and the EOFY Account Statement from your dealer at tax time to complete the accounting for the tax return.
All information provided by New Brighton Capital is factual information only and is not intended to recommend or state an opinion of New Brighton Capital or otherwise be financial product advice, and should not be relied upon as such. You should consider taking advice from the holder of an Australian Financial Services Licence before making a decision on a financial product.