Are you considering investing in gold or silver bullion through your SMSF? Here are some key guidelines to help keep your fund compliant:

1. Ensure your SMSF's investment strategy allows for investment in bullion.
   If it doesn't--or if it's unclear--consider updating it with the help of a qualified adviser. [1]

2. Make sure all purchase invoices and statements are issued in the name of your SMSF, not your personal name.

3. Store bullion in a secure, audited facility.
   This is generally the simplest option (e.g. a mint or accredited metal storage provider).

4. If storing bullion at home, keep it strictly separate from personal assets.
   This usually requires a dedicated safe or storage area. [2]

5. You must be able to verify the existence of the bullion as at 30 June each year.

6. Report bullion at market value in the SMSF's annual accounts.
   This must be done as at 30 June each year. [3]

7. Audited storage facilities typically provide an annual audit certificate.
   Your SMSF auditor can rely on this.

8. Home storage requires more evidence.

   • Ideally, a qualified third party should inspect the bullion and provide a signed, dated report
   • Some auditors may accept photographic evidence with a visible date (e.g. newspaper)
   • Alternatively, a live virtual inspection via Zoom or Teams may be required

9. Insurance is best practice.
   While not legally required, bullion should ideally be insured within 7 days.
   The ATO expects prudent trustees to insure assets in the SMSF's name--do not rely on personal home and contents insurance.

10. Bullion is generally not a collectible.
    However, items with artistic value, unusual design (e.g. collectible coins), or limited-edition features may be treated differently.

References

[1] SIS Section 4.09
[2] SIS Regulation 4.09A
[3] SIS Regulation 8.02B