An SMSF can hold life insurance, TPD (total and permanent disability) and income protection insurance for its members. The ATO has published guidance on the deductibility of insurance premiums for complying SMSFs under section 295-465 of the Income Tax Assessment Act 1997 — the specific tax treatment for your fund is worth exploring with your tax adviser, as outcomes vary depending on your fund's individual circumstances. Since 7 August 2012, the ATO has required every SMSF t

Written by Christopher Hall, AdvDipFP | Authorised Representative, AFSL 526688 Published: March 2026 | Last updated: April 2026 The ATO does not require SMSF trustees to hold insurance — but it does require every trustee to formally consider whether each member needs cover and document that decision in the fund's written investment strategy. This obligation has been in force since 7 August 2012, when SIS Regulation 4.09 of the Superannuation Industry (Supervision) Regula

Written by Christopher Hall, AdvDipFP | Authorised Representative, AFSL 526688 | March 2026 Published: March 2026 | Last Updated: March 2026 TPD insurance — Total and Permanent Disability insurance — pays a lump sum to a policyholder who becomes permanently unable to work due to illness or injury. It is not income replacement, and it is not the same as trauma cover. It is a one-time capital payment, paid in full once a claim is accepted, intended to cover the financial conseq