From Michael Fox, Campaign Coordinator, Save Super Art: Dear All, Please find below a Campaign Media Release from the ALP.  We are pleased to announce that all three major political parties in Australia have now reached a consensus position to rule out the Cooper Report proposals to ban artworks from SMSFs.

As such the Australian art market can return to a state of certainty for the first time since these recommendations were made public on April 29.

The audit guidelines drawn up by the Australian Artists Association in conjunction with SPAA have been accepted and we look forward to further development of these guidelines with whoever holds office following the Federal election of 21 August.

The Public Rally called for yesterday will no longer be necessary.  The Melbourne Art Fair can look forward to a week of celebrations of the best Australian art without these uncertainties hanging over its head.

We wish to thank all the organisations and individuals who have assisted the campaign since May...This is not necessarily the end of the campaign.  Some supporters have called for a peak lobbying group to emerge from the chrysallis of Save Super Art.  That would be great.  For the time being there is an election to be decided....

Warm regards, Michael Fox, Save Super Art Campaign Co-ordinator

Campaign Media Release

Minister for financial services, Superannuation and corporate law

Minister for environment protection, heritage and the arts 

NEW STANDARDS FOR STORING COLLECTABLES AND PERSONAL USE ASSETS HELD BY SELF-MANAGED SUPERANNUATION FUNDS 

A re-elected Gillard Labor Government will ensure that from 1 July 2011 collectables and personal use assets owned by self managed superannuation funds (SMSFs) must be stored according to new rules to prevent them from giving rise to a personal benefit.  

SMSFs can continue to invest in personal use and collectable assets provided they are held according to these new legislative standards that will ensure the assets do not give rise to a personal benefit and are held for the purposes of providing retirement benefits. Existing assets that cannot meet these rules must be sold within five years.

Federal Labor recognises that collectables like artworks can be a legitimate asset class, providing investment opportunities for self managed retirees as well as important commercial benefits to Australia’s artists.

However, Labor acknowledges concerns over such assets attracting superannuation’s concessional tax treatment while being available for ‘personal benefit’ (for example, being displayed in the home of a super fund member). 

There are currently no enforceable guidelines around how these assets can be held to prevent them from giving rise to such personal benefits.

The Government acknowledges the concern and uncertainty that arose in the self managed fund and art and collectables community following the publication of the Super System (Cooper) Review report.  The Review recommended that SMSFs that are not APRA regulated funds be prohibited from investing in such assets, and that a five year transition period should be applied to existing SMSFs, during which SMSFs would be required to convert to a small APRA fund or dispose of existing collectable and personal use assets (Recommendation 8.14).

That is why it was important that the Gillard Labor Government thoroughly consider and outline its detailed response on this issue as quickly as possible.

Labor’s approach is broadly in line with the best practice artwork investing guidelines that were recently released by the Self Managed Super Funds Professionals Association of Australia (SPAA) and the Australian Artists Association (AAA).

A re-elected Gillard Labor Government will consult with industry and community groups on the details of legislation to implement these new standards.

This announcement will have no cost to the budget.

30 JULY 2010   www.alp.org.au   AUTHORISED N.MARTIN for the ALP, 5/9 Sydney Ave. Barton ACT.