STOP PRESS: High Court decision - Hill v Zuda Pty Ltd

Today, the High Court has handed down its decision in the Hill v Zuda Pty Ltd as trustee for the Holly Superannuation Fund case.

The Full Bench of the High Court has unanimously held, consistently with numerous previous Supreme Court decisions and even the view of the ATO (SMSFD 2008/3), that SIS Reg 6.17A does not apply to SMSF BDBNs.

Most significantly this means that members of an SMSF need not renew their binding death benefit nomination every three years. Also, it means that various formal requirements, such as will-like execution, which apply to BDBNs in retail fund and industry funds do not apply to SMSF BDBNs.

While the High Court held that SMSF BDBNs are not required to be remade or reconfirmed every three years, they should be reconsidered on a regular basis and when significant events occur in relation to the member who made the nomination.

For any further information regarding this article please call SUPERCentral on 02 8296 6266 or email info@supercentral.com.au.