Some certainty on CGT and insurance payouts

SMSF technical expert and columnist for The Australian newspaper
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Key points

  • There has long been uncertainty on whether or not CGT is payable on life insurance policies that paid a benefit for TPD, temporary disability or trauma.
  • The industry has lobbied for change for many years.
  • Legislation has recently been introduced to Parliament, which will rectify the issue and confirm that CGT will not be payable.

 

Late last year, the Federal Government introduced legislation into Parliament to fix a tax anomaly that has been hanging around for almost 30 years.

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