Deductibility of Income Protection insurance

[Ross]

Can somebody please confirm this is deductible where premiums are paid through your super
Is it relevant how its paid ? My guess in no just want clarification

Ross

 

[hc_andy]

I'm pretty sure you can. I get a letter from my Insurance company every year to say that I can claim $x amount. I'll see if I can dig up the letter.

 

[marg4000]

Better check with your accountant or the ATO.

Super funds pay reduced tax, so if they are paying your insurance I can't see that ATO allowing you to "double dip" by claiming the premium as a deduction.

You won't be paying the insurance - your super fund will.
Marg

 

[Pushka]

Income Protection Insurance is deductable when you pay it personally. We have claimed it through our personal taxation returns.

 

[BV]

Ross

Are you also getting life/TPD insurance?
There is no tax advantage in owning an income protection policy under super (because it is already tax deductible to you), whereas life/TPD is not.

By having income + life/tpd in super you are able to pay the premium with super funds which are only tax advantaged by 15% as opposed to 30% or 40% outside super.

However, if both policies are obtained through your Super you would be able to draw down on your existing investment funds rather than having to find the cashflow to pay the premium each year and you could also benefit from the multipolicy discount.

You need to be aware however that under super there are some features of your income protection policy which your super may not be able to pass on to you eg meal allowance, specific injury benefit and unemployment benefit due to superannuation legislation. There are some other negatives associated with having a policy under super
(see the information on this website) http://insurancewatch.com.au/faq.shtm#topic11

I hope this helps.