Total & Permanent Disablement Tax Deduciton Portions

Total & Permanent Disablement Tax Deduction Portions

Changes were recommended to the Income Tax Assessment Amendment Regulations which related to the deductible portion of premiums for TPD insurance, and were passed on 5 October 2011.

These changes limit the deductible portion of TPD insurance premiums and give superannuation funds the option of using a simpler method to determine this portion, without having to engage an actuary.

Key changes from the draft Regulations include:

1. Clarification that deductibility is not affected if terminal illness is included into the insurance policy;

2. The inclusion of domestic (home) duties definition; and

3. The tightening of the definitions of TPD own occupation and TPD any occupation.

Importantly, there were no changes to the specified deductible portions of eligible TPD definitions, as follows:

Insurance Policy

Specified Deductible Proportion %

TPD Any Occupation*

100%

TPD Own Occupation*

67%

TPD Own Occupation bundled with Death (Life Cover)*

80%

*(Including with one or more of the following inclusions: ADL, cognitive loss, loss of limbs and domestic (home) duties)

(Article courtesy of AIA Insurance, 19 April 2012)

Total & Permanent Disablement Tax Deduction Portions

Changes were recommended to the Income Tax Assessment Amendment Regulations which related to the deductible portion of premiums for TPD insurance, and were passed on 5 October 2011.

 

These changes limit the deductible portion of TPD insurance premiums and give superannuation funds the option of using a simpler method to determine this portion, without having to engage an actuary.

 

Key changes from the draft Regulations include:

1. Clarification that deductibility is not affected if terminal illness is included into the insurance policy;

2. The inclusion of domestic (home) duties definition; and

3. The tightening of the definitions of TPD own occupation and TPD any occupation.

 

Importantly, there were no changes to the specified deductible portions of eligible TPD definitions, as follows:

 

Insurance Policy

Specified Deductible Proportion %

TPD Any Occupation*

100%

TPD Own Occupation*

67%

TPD Own Occupation bundled with Death (Life Cover)*

80%

 

 *(Including with one or more of the following inclusions: ADL, cognitive loss, loss of limbs and domestic (home) duties)

(Article courtesy of AIA Insurance, 19 April 2012)

SMSF Life Insurance Opportunity

Discover how the new SMSF Master Insurance Plan can meet your life insurance needs.

 

Until now, SMSF members seeking life insurance have been restricted to purchasing a retail policy.

 

We now have access using a large insurance company’s products, to offer a specifically tailored insurance arrangement for SMSF members, providing them with access to the benefits of wholesale group insurance.

 

Potential savings for SMSF Members are quite strong, and more benefits can be gained via simplified underwriting and limited medical requirements up to certain limits.

 

Call us now on 1300-78-55-77 and ask more about the SMSF Master Life Insurance Plan.