Hope of concessions over TFNs
After extensive discussions with the financial service industry, the Australian Prudential Regulation Authority (APRA) is understood to be likely to move to ensure people are not disadvantaged by lapsing superannuation-related risk policies where Tax File Numbers (TFN) have not been quoted.
The regulator has been in discussions with the industry on the issue amid reports some insurers were still having difficulties in contacting people they believed would be affected by the changes that came into effect on July 1.
It is understood a formula has been developed that would allow a period of grace of up to six months to rectify the problem with respect to life policies.
Under the new ‘simpler super’ rules, superannuation funds cannot accept non-concessional (personal) contributions if a member has not quoted a valid TFN. This has had a knock-on effect with respect to the non-concessional payment of insurance premiums.
AUTHOR
Mike Taylor
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