From www.smsfadviser.com: A new paragraph in TR 2010/1DC2 suggests that insurance proceeds may be classified as contributions if they are intended to benefit a fund member, which has raised concerns among financial professionals.

Natasha Panagis from the Institute of Financial Professionals Australia highlighted that this ruling conflicts with existing regulations, as death and disability insurance proceeds typically count as investment earnings within superannuation funds.

The update also clarifies that if an SMSF acquires an asset below market value, the difference could trigger non-arm’s-length income rules.