Things you need to know
Declare at this question any bonuses you received from a life insurance company or friendly society. Life insurance policies are those that a life insurance company and friendly society issue.
You need to include a bonus amount at this question if all the following conditions apply:
- You received the bonus amount or directed how it's to be dealt with, within 10 years from when the policy started.
- Your life insurance policy or friendly society insurance bond matured, or was terminated, forfeited, or surrendered in full or in part.
- The bonus amount was in addition to the premiums you paid to the life insurance company or friendly society.
If during the term of your life insurance policy or bond, you increased the amount of your premiums by more than 25% of the amount of premiums you paid in the previous policy year, your policy is taken to start at the beginning of the policy year in which you paid the increased premiums. This means that you may need to include some or all of a bonus amount in your assessable income.
You can't claim a loss if your life insurance policy or friendly society insurance bond either:
- matured
- was partly or fully surrendered, terminated or forfeited.
Different rules apply to a bonus amount that you received from a policy that started on or after 28 August 1982 and before 8 December 1983. Generally, you don’t need to include the bonus amount in assessable income unless the policy started at a later date and the rules apply. If you aren't sure whether you need to include your bonus, contact us.
Don't declare as income
Don't declare as income the following amounts:
- bonuses you received after the 10th year of the policy
- life insurance bonuses from policies that
- you started before 28 August 1982
- matured due to the death of the person insured
- you surrendered due to an accident, illness or other disability of the person insured
- you surrendered due to severe financial hardship
- are retirement savings accounts
- benefits you received from a friendly society that are bonuses from income bonds; include these amounts at question 24 Other income 2026.
If you received a statement detailing the bonus amount allocated to your continuing life insurance policy or friendly society bond but you haven't actually received the bonus or directed how it is to be dealt with, don't include the bonus amount as income.
If you didn't receive a bonus because your life insurance policy or friendly society insurance bond matured, or was terminated, forfeited, or surrendered in full or in part, go to question 23 Forestry managed investment scheme income 2026.
What you need to complete this question
You'll need your:
- life insurance policy and bonus advice
- friendly society policy and bonus advice.
Completing your supplementary tax return
Write at question 22 – label W, either:
- the whole bonus amount you received in 2025–26 if you received it during the first 8 years of the policy
- two-thirds of the bonus amount you received in 2025–26 if you received it during the 9th year of the policy
- one-third of the bonus amount you received in 2025–25 if you received it during the 10th year of the policy.
Don't show cents. Don't include any bonus amount you receive after the 10th year of the policy.
Check before moving to the next question
Check that you have:
- written in your tax return the correct bonus amount
- kept a copy of your policy document and bonus advice with your other records, don't attach them to your tax return.
You'll get a tax offset equal to 30% of the amount you show at this question as we will work out this tax offset for you.
Where to go next
- Go to question 23 Forestry managed investment scheme income 2026.
- Return to main menu Individual supplementary tax return instructions 2026.
- Go back to question 21 Rent 2026.