Why SMSF trustees are turning to gold
Gold has always been a safe-haven asset during market volatility. For Self-Managed Super Fund (SMSF) trustees, it’s an attractive way to diversify retirement savings. But here’s the question:
Can your SMSF invest in gold?
The short answer: Yes.
However, SMSF gold investment comes with strict ATO compliance rules—especially around storage, insurance, and audit evidence. Missteps can lead to serious penalties.
Let’s break down the three main ways to invest in gold through your SMSF and what you need to do to stay compliant.
1. Physical gold bullion: the popular choice for SMSFs
Gold bullion (bars and ingots) is the most common SMSF gold investment.
Why it’s easier: Bullion is generally not classified as a ‘collectable’ under superannuation law because its value is tied to the spot price of gold. This means fewer restrictions compared to coins or jewellery.
ATO compliance checklist for bullion:
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Storage: Can be kept in a secure third-party vault (e.g., The Perth Mint) or at the trustee’s business premises—or even at home.
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Security: If stored at home, it must be in a dedicated SMSF-owned safe, not shared with personal items.
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Insurance: Must be insured in the SMSF’s name, separate from personal policies.
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Audit evidence:
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Third-party storage: Provider statements are ideal.
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Home storage: Auditors often require dated photos showing serial numbers and a current newspaper for proof.
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2. Gold-backed ETFs: the hassle-free option
If you want exposure to gold without dealing with physical storage, consider Gold-backed Exchange Traded Funds (ETFs).
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How it works: You buy units in a fund that holds physical gold for investors.
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Compliance: ETFs are listed financial products, so they’re not considered collectables. Auditors can easily verify ownership and valuation through brokerage statements.
3. Gold coins and jewellery: the collectables trap
Gold coins and jewellery are usually classified as collectables if their market value exceeds their metal or face value. This triggers strict ATO rules:
Rule — Requirement
Acquisition — Cannot be bought from a member or related party.
Usage — Cannot be used or displayed by members (no present-day benefit).
Storage — Cannot be kept at a private residence; must be in a third-party vault or business premises (without display).
Insurance — Must be insured in the SMSF’s name within 7 days of purchase.
Sale — Selling to a related party requires an independent valuation first.
Warning: Breaching these rules is a serious contravention of the Superannuation Industry (Supervision) Act (SISA) and can result in your fund being deemed non-complying—leading to hefty penalties.
Before you invest: two critical checks
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Trust deed: Ensure your SMSF Trust Deed allows investment in precious metals.
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Investment strategy: Confirm the investment aligns with your fund’s strategy.
Gold can be a powerful way to diversify your SMSF portfolio—but compliance is non-negotiable. Physical bullion is treated differently from collectable coins and jewellery, and ETFs offer the simplest route for many trustees.
Before investing, consult a qualified SMSF professional or financial advisor to ensure your fund meets all ATO requirements.
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Credits
Sundaram Shanmugam, Smart SMSF Team
