The ATO on Wed 2.7.2014, issued the following Product Rulings:
PR 2014/13: CommInsure Protection – Split TPD Cover. It applies to entities that enter into the scheme from 1 July 2014 until 30 June 2017. The Ruling states that a SMSF that is a complying super fund and holds a policy to which split TPD cover applies as a stand-alone benefit will be entitled to a tax deduction under s 295-465 of the ITAA 1997 for the whole of the premiums (including the policy fee).
PR 2014/14: OnePath Life Limited – OneCare Policy – Life Cover, Total and Permanent Disability Cover and/or Trauma Cover. It applies to entities that enter into the scheme from 1 July 2014 to 30 June 2017. The Ruling states that monthly payments under the instalment benefit payment type received by the policy owner under the insurance cover outlined will not be included in the assessable income of the policy owner or beneficiary in any year of income under s 6-5 of the ITAA 1997.
PR 2014/15: Deductibility of interest in relation to investment in a Property Investor Trust. It applies to entities that enter into the scheme from 1 July 2014 and whose units in the trust are allotted on or before 30 June 2017. The Ruling states the registered holder of the interest is assessable under s 97 of the ITAA 1936 on so much of that share of the net income of the trust estate to which the holder is presently entitled.
[LTN 125, 2/7/14]