Lawyer issues reminder on insurance in super changes
In light of the ATO’s withdrawal of an SMSF Determination last week, DBA Lawyers has reminded trustees and practitioners of the recent changes to insurance in superannuation, effective from today.
Last week, the ATO prospectively withdrew SMSFD 2010/1 with effect from 1 July 2014, DBA Lawyers noted.
“Accordingly, SMSFD 2010/1 is now in fact SMSFD 2010/1W, the ‘W’ of course indicating that the determination has been withdrawn,” DBA Lawyers stated.
“This is a timely reminder that from 1 July SMSFs generally speaking can’t take out new trauma or own-occupation total and permanent disability policies in respect of members. Old policies taken out before that time are grandfathered.”
Speaking at a media briefing in May, CommInsure's executive manager for insurance tech and business delivery, Jeffrey Scott, explained new insurance held inside super from July 1 this year will need to align with amendments to the SIS Act.
Mr Scott said there were significant changes implemented with the definition of total and permanent disability (TPD).
From 1 July 2014, the only definition that will be permitted will be the ‘any occupation’ definition, meaning the ‘own occupation’ definition of TPD will be prohibited from any new policies after July 1, Mr Scott said.
For more information on the changes to insurance in superannuation effective today, click here.
