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 |
