Superannuation Legislation Amendment Act 2010 (117 of 2010)

Schedule 2   Disability insurance premiums paid by superannuation funds

Part 1   2004-05 to 2006-07 income years

1   Complying funds - deductions for insurance premiums for disability benefits

Scope

(1) This item applies if:

(a) the trustee of a complying superannuation fund pays a premium for an insurance policy during:

(i) the 2004-05 income year; or

(ii) the 2005-06 income year; or

(iii) the 2006-07 income year; and

(b) the policy is (wholly or partly) for current or contingent liabilities of the fund to provide benefits for members of the fund (whether the policy covers the whole or parts of the liabilities).

Note: For premiums paid during the 2007-08 to 2010-11 income years, see section 295-466 of the Income Tax (Transitional Provisions) Act 1997.

Entitlement to deduction

(2) Treat the benefits mentioned in paragraph (1)(b) as being death or disability benefits , in relation to the members mentioned in that paragraph, to the extent that:

(a) the benefits are conditional on the disability of the members; and

(b) the disability is described as a permanent disability in regulations made for the purposes of section 295-466 of the Income Tax (Transitional Provisions) Act 1997.

Note: Other events might have to occur after the event of the disability of the members before the fund pays the benefits to the members. For example, the members might have to satisfy a condition of release of benefits specified in a standard made under paragraph 31(2)(h) of the Superannuation Industry (Supervision) Act 1993, such as by reaching a certain age.

(3) Subitem (2) applies:

(a) for the purposes of applying former subsection 279(1) of the Income Tax Assessment Act 1936 to the payment mentioned in paragraph (1)(a) of this item; and

(b) without limiting that former subsection.