The ATO has recently amended the Superannuation Industry (Supervision) Regulations to require trustees of self managed superannuation funds to consider insurance for their members as part of the fund’s investment strategy, and for SMSF assets to be valued at ‘market value’ for reporting purposes.
These changes were originally recommended by the Cooper Review and are now part of the ‘Stronger Super’ reform process. They haven’t received a lot of coverage, and while the impact is limited, it will mean some extra work for many trustees.
Less than 15% of SMSFs take out insurance cover for their members, which is probably why the ATO is introducing this new regulation. There are some advantages and disadvantages of taking insurance through your SMSF, which are set out in Andrew Bloore’s article ‘Should I take out insurance using my SMSF’.