Important Tax changes to TPD inside Super may affect you or your clients..
Important Tax changes to TPD inside Super may affect you or your mining staff.
Recent changes to the tax treatment of TPD cover from the 1st of July 2011 could have important implications for mining staff who have taken out, or are considering taking TPD inside Super.
Have you any staff funding their protection strategies through Retail Super or SMSF?
“In a nutshell the rules around tax deductibility of TPD cover premiums inside super changed.”
What does this all mean in real world terms?
Well it means that those who have been paying for TPD inside super and have enjoyed the tax deduction as trustees may no longer be able to receive the full deduction. The devil is in the detail of the wording. An any occupation policy wording will still be OK under the ATO’s definition as it pretty much matches their definition, but not an own occupation or homemaker or non-working definitions.
The definition clarified by ATO is that a “disability superannuation benefit” requires the person to be unable to work in a job for which they are “reasonably qualified by education, training or experience”
If you are in the situation where you may have staff who maybe in this situation NOW is the time to contact me.