Good morning

The SMSF Professionals’ Association of Australia (SPAA) has reviewed the draft legislation that makes minor amendments to the CGT provisions concerning insurance policies for injuries and illness and support the amendments.

We can confirm that the amendments in respect of superannuation fund trustees conforms with the industry’s understanding of how the legislation will work and how superannuation funds have treated insurance policies previously.

We note that the draft amendments make a consequential amendment to the table in subsection 295-85(4) so that insurance polices for illness or injury held by a trustee of a superannuation fund are not taxed on revenue account.  We believe that a similar amendment should be made to ensure that polices for death of an individual held by superannuation fund trustees should not be taxed on revenue account either.  However, we realise that such an amendment the existing law is likely to be outside the scope of the current amendments.

If you have any questions, please do not hesitate in contacting us.

Kind regard

Jordan

Jordan George
Senior Manager, Technical & Policy
B Ec(Hons), LLB, GDLP, MTax
SMSF Professionals’ Association of Australia Limited
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