Warning: This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.
Insurance risk only members’ TFN requirements
Funds can generally only accept contributions made by a member who has quoted their tax file number (TFN) to the fund. Funds must return member contributions within 30 days of becoming aware that the member has not quoted their TFN unless the member provides their TFN within 30 days of the contribution.
However, there are transitional rules for members who only have an insurance risk interest in a superannuation fund, such as a death or disability entitlement. The Australian Prudential Regulation Authority (APRA) recently announced these transitional rules for regulated funds (not including self managed super funds). Under the transitional rules, where a member’s only interest in a fund is an insurance risk interest, the fund has a longer period (i.e. until 31 December 2007) to return member contributions if it does not have the member’s TFN.
If they don’t have the member’s TFN by 31 December 2007, the fund must return the contributions to the person or entity that paid them. The contributions returned can be reduced to take account of the period of cover provided by the insurer prior to the refund of the premium.
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