Government Guarantee on Bank Deposits

The Rudd Government’s guarantee on bank deposits will extend to bank deposits of self managed superannuation funds.

However, the guarantee does not extend to holdings in Cash Management Trusts.

Trustees may wish to confirm whether their cash holdings are held in a bank account (which is now subject to the three year guarantee) or are held in a CMT (which is not subject to the guarantee) and consider (in conjunction with their SMSF adviser) whether holdings in CMTs should be transferred into a bank account.