Silver in an SMSF

Self-managed super fund (SMSF)

What is allowed: Same rules as gold. Silver bullion coins are collectables only when they trade above the spot price of their metal content; silver bars are not on the ATO's list.

Storage: Collectables (including coins above face value and bullion coins above spot) cannot be stored in a related party's private residence, trustees must record in writing why they chose the storage place, and the item must be insured in the fund's name within seven days. They cannot be leased to or used by related parties. For bars that are not collectables, the ATO pages opened set no specific storage rule; an auditor writing in SMSF Adviser says auditors check security arrangements and ownership evidence such as a vault statement or invoice.

Tax: A complying SMSF pays tax at a concessional 15% and gets a one-third capital gains discount on assets held at least 12 months. Investment income from assets that support a retirement phase income stream can be exempt. Non-arm's length income and non-complying funds are taxed at 45%. The ATO treats crypto as a CGT asset, not money.

Watch out for:

• Bullion coins bought above spot, and coins worth more than face value, are collectables and must meet storage, insurance and no-use rules.
• Collectables cannot be stored in a member's or related party's home.
• In-house assets above 5% of total fund assets at year end require a written plan to reduce them.
• Breaches can lead to penalties, the fund being made non-complying, trustee disqualification or prosecution.