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Am I taxed on an insurance payout?
Small business, Business news, Investing, Tax Chris Sykes Small business, Business news, Investing, Tax Chris Sykes

Am I taxed on an insurance payout?

Australia has had its fair share of disasters over the last few years – drought, bushfires and floods – that have ramped up the volume of insurance claims. Most people would assume that if and when they need to claim on their insurance, the insurance payout covers the damage and is not income assessed for tax purposes - but this is not always the case.

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Acquiring collectables inside your SMSF
SMSF, Investing Chris Sykes SMSF, Investing Chris Sykes

Acquiring collectables inside your SMSF

Clients with self-managed superannuation funds (SMSF) often ask what assets the SMSF can acquire.

‘Why’?

The golden rule for acquiring assets inside your SMSF is why? To be compliant, your fund must be maintained for the sole purpose of providing retirement benefits to members, or to their dependants if a member dies before retirement. The sole purpose test (section 62 of the Superannuation Industry (Supervision) Act 1993), is your starting point. If the collectible you are looking to acquire does not fulfil this purpose, then you have an immediate problem.

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