A new insurance offering has come to market specifically aimed at helping self-managed superannuation fund (SMSF) trustees challenge the Australian Taxation Office (ATO) on excess contributions.
The offering is being promoted by Self Super Insurance, which says it is offering a new level of cover to help trustees in the event a fund member receives an excess contribution tax assessment notice.
Self Super managing director John Kelly said his company had always provided cover to a trustee who was sued for an error in relation to excess contributions, but this had been extended to provide $25,000 toward the legal costs of a member who successfully challenges an assessment on the basis the ATO has applied the law incorrectly.
"There will be occasions when someone will wish to legitimately challenge the ATO regarding an excess contribution tax assessment notice but won’t because the costs of doing so potentially outweigh the benefits," he said.
Kelly said his company’s new offering gave such people an option.
