Can I Claim A Tax Deduction For My Premiums?

The Australian Taxation Office allows tax deductions for insurance premiums where it can be proven that those premiums relate to the earning of assessable income.
 
One type of insurance premium which is allowable as a tax deduction is that paid for Income Protection Insurance (also known as Sickness and Accident). The Tax Office’s view is that the premium paid results in the benefit of income, and as such allows a deduction for it. However, if there is a component in the premium that goes towards a lump-sum cover for death, injury or disablement, then that part of the premium is not an allowable deduction. If you have a combined Income Protection and Death/Disability policy, your insurance company should advise you how much of your insurance premium you can claim as a tax deduction. If you are unable to obtain the split, then you should not claim a deduction at all.
 
For further information on claiming a tax deduction for your insurance premiums, contact the Australian Tax Office or your tax accountant. And remember, if you do make a claim under your Income Protection Insurance, you must declare the income in your tax return.

Disclaimer:

The information provided is general in nature and does not take into account your particular insurance needs, financial situation or investment objectives. We recommend that you speak to an xlife risk adviser or life insurance broker before you make any decision regarding risk insurance.
xLife Pty Ltd ASIC No. 305213 is a Corporate Authorised Representative of Milennium3 Financial Services Pty Ltd.
ABN 61 094 529 987 AFSL No. 244252