ATO Releases New Guidelines on Insurance in SMSF’s
The ATO has recently issued a guideline for all Self Managed Super Funds re. the adequate provision of personal insurance coverage for trustee/members.
Specifically, the trustee must consider whether the fund should hold insurance coverage for one or more members of the fund and have that fund hold an insurance contract covering member/s.
The guidelines do not specifically mention what sort of insurance coverage or types of cover should be applied however we believe consideration for Life Insurance and TPD should be mandatory, with further consideration given to Income Protection/Salary Continuance where appropriate.
We recommend all those with SMSF’s speak to their adviser regarding a review of their insurance within their SMSF to confirm their current arrangements and that this review be noted in the trust deed.