Is Income Protection insurance tax deductible?
NobleOak’s Disability Income Insurance pays a monthly benefit of up to 70% of your Regular Income (before tax) if you can’t work due to a Sickness or injury (subject to certain limits). While premiums for Income Protection Insurance are generally tax-deductible, you need to make sure you understand the tax implications, and you may need to seek tax advice.
When you can claim a tax deduction
According to the Australian Taxation Office (ATO), Income Protection Insurance premiums are generally tax-deductible. The position can vary where cover is purchased as part of superannuation arrangements (for example, through an SMSF, or through an industry or retail super fund).
For all queries about taxation specific to your situation, we recommend you seek advice from an accountant or suitably qualified professional.
What you need to declare
As these benefits replace regular income, the ATO stipulates that any payments received under an Income Protection Insurance policy must be included on your tax return as part of your assessable income.
Please note that the information we provide is not advice but general information only.