Are you an SMSF trustee who is looking to acquire buy/sell insurance policy through your SMSF instrument? You better think twice before you do.
SMSF trustees may see a spike in their fund’s tax rate from 15 per cent to 49 per cent if they purchase buy/sell insurance policies through their SMSF. Many investors enter into such arrangement because it provides them with tax deductions. However, such benefit is easily outweighed by the huge risks involved.