Terminal Medical Condition - 24 month certification period implemented

The Government has made good its Budget announcement and introduced regulations which substitute a 24 month certification period for the current 12 month period.

Currently the relevant medical certificates must state that death is likely within 12 months of the date of the certification.  The change will permit medical certificates to be provided where death is likely to be within 24 months of the date of certification.

The change takes effect on and from 1 July 2015.

Existing insurance arrangements which provide for a terminal medical condition based upon a 12 month certification can continue after 1 July 2015.  Whether insurance arrangements which commenced after 1 July 2015 will be altered to adopt the 24 month period remains to be seen.  Only offering a 12 month certification period will not breach the requirement that insurance arrangements are to be consistent with the principal release conditions: a 12 month certification period is consistent with a 24 month certification period.

The SUPERCentral Governing Rules will be updated to reflect the change to the 24 month certification period.

The relevant amendment regulation is the Tax and Superannuation Laws Amendment (Terminal Medical Conditions) Regulation 2015  No 110 of 2015.