Most significantly, the collectible must be insured in the fund’s name within seven days of the SMSF acquiring it.

Multiport’s technical services director told SMSF Adviser he predicts a reduction and a refinement in the collectibles that are held within SMSFs as a result of these new requirements.

“I don’t think it will disappear as an investment, but I think it will become more focused,” Mr La Greca said.

“I think what we’ll see is a refinement. There will be less collectibles [and] I don’t think we’re going to see as much of the more … exotic things that people buy.”

However, SMSF Professionals' Association of Australia's (SPAA’s) director for technical and professional standards, Graeme Colley, has indicated collectibles can still be a worthwhile investment, provided trustees are “prudent”.

“It’s a matter of making sure the trustees meet the technical requirements … that is the valuation, the making sure that it’s not used, making sure it’s stored correctly, and making sure it’s insured,” he said.