Cars & Superannuation

Finance for your new & used cars over $2,347,000 todate.

MOTOR VEHICLES AND SUPERANNUATION
An article by Gerry Schembri

If you are like most people, the thought of using your superannuation to invest in a quality motor vehicle probably hasn't occurred to you. Yet more and more astute investors are starting to realise the benefits of doing just that.
How can you contemplate such an idea if your superannuation is invested in a large institutional fund ? The solution is to establish a "Do It Yourself" superannuation fund and then rollover your super into the new fund. You are now ready to control where your money should be invested subject to the Prudent Investor Rule and the provisions of the Superannuation Industry Supervision Act.
In essence this means that for a superannuation fund to acquire a motor vehicle, there must be a sound investment reason to do so and this reason needs to be documented. It may well be that the vehicle is a Classic, Vintage or Veteran car and you believe the acquisition will result in a significant future capital gain. Alternatively, if you are in business, your superannuation fund could purchase a normal passenger vehicle and lease it to your business at a market rate of return.

Whatever you decide, it is important that you document your purchase reason in the fund's investment strategy. A typical investment strategy should outline the purpose, expectations, risk profile and time horizon of the fund. The main objective of any superannuation fund must be to achieve adequate retirement benefits for the fund members. Investment in a quality motor vehicle can contribute to this objective as long as the decision is made carefully, skillfully and with due dilligence.
A final word of caution is to remind readers that superannuation is a complex business these days and professional advice should be obtained at all times. The author, Gerry Schembri is a specialist in this field and may be contacted for initial discussions via the internet at gerry@dobrigh.com.au or by telephone on (03)97350677.

GERRY SCHEMBRI CPA PARTNER
DOBRIGH & WINTERBOTTOM
CERTIFIED PRACTISING ACCOUNTANTS
MELBOURNE & LILYDALE

	MOTOR VEHICLES AND SUPERANNUATION An article by Gerry Schembri If you are like most people, the thought of using your superannuation to invest in a quality motor vehicle probably hasn't occurred to you. Yet more and more astute investors are starting to realise the benefits of doing just that. How can you contemplate such an idea if your superannuation is invested in a large institutional fund ? The solution is to establish a "Do It Yourself" superannuation fund and then rollover your super into the new fund. You are now ready to control where your money should be invested subject to the Prudent Investor Rule and the provisions of the Superannuation Industry Supervision Act. In essence this means that for a superannuation fund to acquire a motor vehicle, there must be a sound investment reason to do so and this reason needs to be documented. It may well be that the vehicle is a Classic, Vintage or Veteran car and you believe the acquisition will result in a significant future capital gain. Alternatively, if you are in business, your superannuation fund could purchase a normal passenger vehicle and lease it to your business at a market rate of return.	Whatever you decide, it is important that you document your purchase reason in the fund's investment strategy. A typical investment strategy should outline the purpose, expectations, risk profile and time horizon of the fund. The main objective of any superannuation fund must be to achieve adequate retirement benefits for the fund members. Investment in a quality motor vehicle can contribute to this objective as long as the decision is made carefully, skillfully and with due dilligence. A final word of caution is to remind readers that superannuation is a complex business these days and professional advice should be obtained at all times. The author, Gerry Schembri is a specialist in this field and may be contacted for initial discussions via the internet at gerry@dobrigh.com.au or by telephone on (03)97350677. GERRY SCHEMBRI CPA PARTNER DOBRIGH & WINTERBOTTOM CERTIFIED PRACTISING ACCOUNTANTS MELBOURNE & LILYDALE

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