On 16 June 2011 the Treasury released a consultation paper entitled “Streamlining Deductions for the Cost of Disability Insurance Through Superannuation”. Amendments to the ITAA 1997, contained in the Tax Laws Amendment (2011 Measures No 4) Bill 2011, will streamline the process for claiming tax deductions for the cost of total and permanent disability (TPD) insurance provided through superannuation. Specifically, the amendments provide for the percentage of certain TPD insurance premiums (or the cost of self?insurance) that is deductible to superannuation funds to be specified in regulations.
The consultation paper provides the basis for consultation on the content of the regulations. The paper sets out the deductible percentages for certain TPD insurance premiums, and the definitions of the associated TPD insurance policies, that would be prescribed in the regulations.
The closing date for submissions is Friday, 1 July 2011.