Same sex couples and their children will benefit from changes to superannuation, taxation and other legislation set to take effect from 1 July 2009, which place the treatment of life insurance benefits available to same sex couples and their children on a more level playing field.
In CommInsure’s latest ‘Did you know?‘ series, National Technical Manager, Alex Koodrin, sets out the potential life insurance benefits to a growing number of same sex partners and their children when revised definitions of terms such as ’spouse’, ’relative’ and ‘child’ apply from 1 July 2009.
According to CommInsure, these revised terms and/or rules, applicable variously within the Superannuation Industry (Supervision) Act 1993, the Insurance Contracts Act 1984, the Income Tax Assessment Act 1997 and the Life Insurance Act 1995, will all allow the adviser to structure more tax effective strategies for any of their clients that are in a same sex relationship, and their children, given they meet the criteria.
One exampe cited by Mr Koodrin is that when the revised definition of the term ’spouse’ comes into effect on 1 July 2009 within the Income Tax Assessment Act 1997, it will include the life insured’s same sex partner or a child of the same sex partner, allowing them to receive TPD and trauma proceeds tax-free.
Advisers/paraplanners wishing to read the full article can access it at any time from the Company Publications section in the riskinfo Resource Centre, or by clicking the following link: Same-sex Couples and Life Insurance 0509.
