'Exotic assets' could be banned from super funds

Exotic assets like sports cars, racehorses and wine cellars will be banned from inclusion in self-managed super funds if recommendations from the recent Cooper review are adopted.

A report in the Australian notes that people who breach the rules may be obliged to take mandatory education lessons on what is allowable in self-managed funds if such proposals are enforced by the federal government.

However, findings on phase three of the Cooper review, which were released this week, would still allow trustees to choose other investments. The news may interest Aussies who wish to compare term deposits in search of the best returns for their monetary assets.

The review promotes a veto on the use of "collectables" and personal-use assets by trustees, which could include paintings, jewellery, antiques, stamp collections, golf club memberships and boats.

"The panel accepts that some of these types of assets may appreciate in value over time and investors with the appropriate specialist knowledge can profit out of them," said the report.

Meanwhile, it was reported earlier this month that the federal government is planning to bring in tax breaks for Australian bank accounts and deposits as part of a new savings scheme.

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