06 May 10 Transitional relief: income tax deductibility of TPD premiums by super funds
On 13 October 2009, the Minister for Financial Services, Superannuation and Corporate Law, Chris Bowen, announced an amendment to the tax law to provide transitional relief to complying superannuation funds for the deduction of insurance premiums for Total and Permanent Disability (TDP) benefits for the income years 2004-05 to 2010-11.
On 6 May 2010, Treasury released an Exposure Draft of a Bill to give effect to the changes. It also released a short discussion paper on the potential wording of regulations to be made under s 295-466 of the Income Tax (Transitional Provisions) Act 1997 which will be inserted into the Act by Schedule 1, Item 5 of the draft legislation. The purpose of such regulations will be to describe disabilities that are considered permanent disabilities for the purpose of the transitional meaning of the terms 'disability superannuation benefit' and 'death or disability benefits'.
The closing date for submissions is Thursday, 3 June 2010.