Tax deductibility of Income Protection Insurance Premiums
Written and accurate as at: Jul 04, 2017 Current Stats & Facts
Income Protection can provide you with an ongoing payment when you can’t work due to injury or illness. It helps replace up to 75% of your income to help you meet your ongoing bills and living expenses until you can get back to work.
The Australian Taxation Office (ATO) states that any payment made for insurance that covers your regular income is regarded as tax-deductible. This means your income protection insurance premiums may be tax-deductible if bought as a standalone policy, that is, outside of your super fund.
You can claim the cost of premiums you pay for your Income Protection insurance against the loss of your income. If you make a claim, you must declare any payment you receive under such a policy on your tax return.
Where the policy is taken out through your superannuation and insurance premiums are paid for via additional super contributions, tax deductions are generally also available.
We have helped many clients here at TCFS with their Income Protection. We help you review what insurance coverage you may already have, make changes if needed and fill in any gaps in your coverage to give you peace of mind at claim time that you are covered. Speak to us about how to structure your income protection whether it be inside super, outside super or a combination of both.
Call TCFS now on 02 4276 3311 to book an appointment to speak to our specialist Financial Planners about you or your family’s income protection needs.
Call Sandy from Distinct Business Solutions now on 02 4210 8780 for more information on what else you can claim as a tax deduction as well as your personal and business taxation and accounting needs.
This information (including taxation) is general in nature and does not consider your individual circumstances or needs. Do not act until you seek professional advice and consider a Product Disclosure Statement.
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