I have recently commissioned Maxim Consulting, a local accounting and tax planning group, to investigate superannuation issues of inclusion of fine art into self-managed superannuation funds. Please read the information below and should you have any questions please contact me or Maxim Consulting directly. Mark Widdup   Acquisition of Art By Self Managed Superannuation Funds   Superannuation Funds must have as their principle objective, the goal of providing benefits to members in their retirement. The normal methods undertaken to achieve the ultimate objective is by making regular contributions and investing in assets with the intention of achieving appreciation in the value of those assets. Investing in various asset classes is now required to be broadly outlined by a structured Investment Strategy. This Investment Strategy, and indeed the acquisition of assets, can and often does, extend to the purchase of art and valuable collectables. If you have control of a self managed fund the main point is that accumulated cash reserves or assets held in superannuation funds may be applied to the purchase of your preferred piece of art.   You will need to balance what you prefer in an artwork with an awareness of the artist's reputation.   Important Considerations   Before acquiring art for your superannuation fund, you should ensure that your fund firstly has an Ivestment Strategy and secondly, that it provides for such an acquisition. If not, it is a relatively uncomplicated exercise to alter, provided a number of issues are satisfied.   Ensure the superannuation fund and lease agreement are properly structured and documented to ensure the existence of commerciality in the event of scrutiny by the Australian Prudential Regulation Authority or the Australian Taxation Office. M a x i m   C o n s u l t i n g   S e r v i c e s  If you are considering the acquisition of art by your own super fund, or wish to establish your own fund, Maxim Consulting can provide advice and assistance. Level 4 Hunter Mall Chambers 175 Scott Street Newcastle NSW 2300 Ph: +61 (02) 4929 1021 Fax: +61 (02) 4929 2302 email: maxim@hunterlink.net.au to Art Advisor