About the SMSF - Minute to Insure The Members

Fully compliant with 1 July 2007 Commonwealth legislation being the "Plan to Simplify and Streamline Superannuation"


Insuring the Members of Your Super Fund

What is a SMSF?

A SMSF is a Self Managed Superannuation Fund. This is a Superannuation Fund that you operate and run by yourself. A SMSF consists of 1 to 4 members. All of the members are trustees of the fund. Even though you run your SMSF yourself, you will need to have an Accountant and an Adviser to help you.

What is the purpose of this minute?

The purpose of this minute is to insure the members for Life Insurance and Total / Disability Insurance.

Why do I need these Minutes?

It is Best Practice to have the decision to insure the members formally minuted. These Minutes achieve that. They are in line with the ATO's desire for proper compliance. When everything is done correctly the ATO is more likely to leave you alone.

What is Life Insurance?

Life Insurance is a policy that will pay money to a person on the member’s death.

What is Total / Permanent Disability Insurance?

Total and Permanent Disability Insurance provides money to you in case you suffer a total and permanent disability and you are unable to earn income. For example, if you were injured in a car crash and became a quadriplegic the insurance company would pay you a specified sum.

WARNING

If you fail to keep a record of minutes the Tax Office may state your fund is non-complying. A non compliant fund is not entitled to any tax concessions and is taxed at the highest marginal tax rate.