Income protection insurance
You can claim the cost of premiums you pay for insurance against the loss of your income. You must include any payment you receive under such a policy on your tax return.
If the policy provides for benefits of an income and capital nature, only that part of the premium attributable to the income benefit is deductible.
You can't 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.
For example, you can't claim a deduction for:
You can claim the cost of premiums you pay for insurance against the loss of your income provided they are not paid by your superannuation fund.
- life insurance premiums
- trauma insurance premiums
- critical care insurance premiums.