Income Protection Insurance and Your Tax Return
Working out what you can claim when it comes to income protection insurance can get confusing. Here are a few explanations that have come directly from the ATO, to help you work out where to begin.
The key thing to remember is that you can claim the cost of premiums you pay for insurance against the loss of your income.
You cannot claim a deduction for a premium or any part of a premium:
- for a policy that compensates you for such things as physical injury
- where the policy is taken out through your superannuation and insurance premiums are deducted from your super contributions
This means that you cannot claim a deduction for:
- life insurance premiums
- trauma insurance premiums
- critical care insurance premiums
Most importantly, if you are lost, the best thing you can do is contact your accountant for advice or lodge your return through them. This way, you know that everything will be compliant and that you will be maximising your return.