Sent: 13-12-2011 11:45:03
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Three Issues This Week
a. Draft Tax Ruling on TPD Insurance
An extremely interesting draft tax ruling about the deductibility of death and disability insurance premiums was published last week (TR 2011/D6).
The ruling replaces an earlier draft ruling because after the first version was released new legislation and associated regulations were put in place. These new rules apply from 1 July 2011.
Super fund trustees will still need to consider this insurance issue very carefully and the linkage between their super fund and the insurance they purchase as well as the operation of the super preservation laws.
The ruling covers all relevant areas quite well and is essential reading with any super fund with TPD benefits.
b. Government's mini-budget
You'll all be familiar with the changes made by the Government in its recent mini budget to the super system. I have more to say about these changes in my DIY Super article in The Australian on 14 December.
c. Cabinet Reshuffle
You will have heard about the Cabinet Reshuffle. When news of it began to leak I expected that financial services and superannuation would be shifted to a new minister. It's somewhat surprising that super and financial services has been mixed in with workplace relations and employment.
I'm not sure where the tax aspects of super will reside. Presumably this will remain the preserve of the Treasury with an Assistant Treasurer who has a number of other unrelated responsibilities. Typically Ministers guard their patches aggressively which sometimes reminds me of how partners in large legal practises behave over clients.
The different layers will keep the industry lobbyists busier!
Some will welcome that super has been officially put into the Cabinet. We shall see.
Finally please consider purchasing a copy of this book "A How To Book Of Self Managed Super Funds". You can look at the contents page at the following link: http://www.atcbiz.com.au/r.php?r=0mjd6ne
For details of the changes made from version 4 to version 5 visit: http://www.atcbiz.com.au/r.php?r=d5xcpch
As you'll see from the list there have been many changes.
Two purchase options are available - once only subscription - $55 inc GST - or an annual subscription will gives you access to all the updates made throughout the year ($120 inc GST). The book can be purchased at the following link: http://www.atcbiz.com.au/r.php?r=5a4agqb
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