The ATO considers artwork as a collectable and a personal use asset, but as long as the SMSF’s trust deed and investment strategy allow for the asset class, then it can be acquired and held by the SMSF.
Trustees need to also consider how holding artwork will satisfy the sole purpose test for its members. Trustees can not get any current day benefit from the investment.
When artwork is held by a SMSF, the SIS Regulations 1994 (the regulations) state at r13.18AA that: