SISFA Membership Insurance Cover
- Are any of the insurance premiums payable by the SMSF?
- No! SISFA has organised this INSURANCE at NO ADDITIONAL COST to its Members for their benefit. As SISFA is the policy holder, it has decided to offer this benefit as part of your SISFA Trustee Membership. The SISFA Membership fee is payable from your SMSF.
- As a SISFA Member am I required to nominate for insurance cover?
- No! The member can choose not to have the insurance cover; however, the Membership fee remains the same. One of SISFA’s objectives is to assist, guide and protect trustees of SMSF and help them to be compliance conscious minimising the risk of the “regulatory world”. The cost of the insurance is paid for by SISFA, as the insured, and is an ‘automatic’ Member’s benefit.
- Can I claim any of the insurance premiums as a tax deduction?
- No! The SMSF will pay the SISFA membership fee. There are precedents, that an SMSF can claim a deduction for a membership subscription to an industry body (if paid by the fund) that provides superannuation services. Refer (TR93/17).
- My SMSF already has tax audit insurance cover. Can I just get cover for the “Trustee Administration Penalty” insurance component ?
- Yes! You can elect not to have the“Audit”Insurance component with SISFA and have only the “Trustee Liability Penalty” component. However, both insurance covers are ‘automatically’ incorporated into your Membership fee and are NOT an additional cost to the Member. We suggest, as an alternative, consideration should also be given to the “family group tax audit insurance cover” or similar product that you may already have in place, and only insure the other tax entities for the “tax audit” insurance cover. By NOT nominating the SMSF as part of the “group cover” may reduce the premiums over all for that cover.
- What does the Trustee Administration Penalty Insurance protect me against and cover me for?
- As a Trustee is fully and personally financially liable for breaches, (these are called Trustee’s Administrative Penalties), the insurance will cover each insured Trustee for penalties imposed by the ATO up to a $25,000 total limit per policy period. The description of these penalties is outlined in the SISFA Membership Certificate (please refer to the policy wording for coverage details).
- Who is the underwriter of the insurance policies?
- The insurance policy has been developed and is administered by CoreSuper Pty Ltd. The insurance policy is underwritten by The Hollard Insurance Company Pty Ltd. Hollard is an Australian insurer, prudentially regulated by APRA with an AFS Licence authorised by ASIC.
For more information visit www.hollard.com.au
- Why should my SMSF clients consider the “Audit” Cover under the SISFA Membership?
- As you are aware the “Audit” Insurance is incorporated into the SMSF SISFA Membership fee. You will find that most of the other “Audit” insurance policies, currently available on the market, are packaged as a “business cover” incorporating superannuation, which in many cases covers clients for audits pertaining to taxation breaches. SISFA’s “Audit” insurance not only covers the SMSF clients for the cost of audits for taxation breaches, BUT ALSO for the cost of audits for “Administration Penalty” compliance breaches. The SISFA “Audit” Insurance Cover is SPECIFICALLY designed for an SMSF and its Trustees.