The government will allow self-managed superannuation funds (SMSFs) to invest in collectables under new standards.

The Cooper review had recommended that SMSFs give up existing investments in collectables.

If re-elected, SMSFs will be able to continue to invest in personal use and collectable assets, provided they are held according to new legislative standards that will ensure the assets do not give rise to personal benefit and are held for the purposes of providing retirement benefits, the government said in a statement.

Existing assets that cannot meet these rules must be sold within five years, the government said.

"Labor's approach is broadly in line with the best practice artwork investing guidelines that were recently released by the Self-Managed Super Fund Professionals' Association of Australia (SPAA) and the Australian Artists Association," the statement said.

SPAA chief executive Andrea Slattery "warmly" welcomed the government's announcement.

"We strongly believe collectables, including artwork, are a suitable investment option for many SMSF trustees, and that SMSF trustees should be able to continue to choose these investments for their funds if they deem them appropriate," Slattery said.

"Industry adoption of the SPAA and the Australian Artists Association guidelines on artwork in SMSFs will clarify trustee and auditor obligations by setting a standard for effective storage, documentation and valuation of collectables in SMSFs."

A re-elected Gillard Labor government will consult with industry and community groups on the details of the legislation before implementing these new standards.