Tax Laws Amendment (2011 Measures No 4) Act 2011 allows an income tax deduction for the costs of certain insurance premiums for total and permanent disability (TPD) to the extent of the percentages prescribed in the regulations. The measure will apply from the 2011-12 income year. Transitional relief will provide self-insured funds with greater scope to deduct the notional cost of insurance cover regarded as TPD insurance for the income years 2004-05 to 2010-11.
The ATO has now published the following two documents:
The second document sets out the Commissioner's administrative treatment for self-insured funds.