Tax Deduction for Income Protection Insurance

From: Rixter ®


Dale,

I was at a Investment meeting the other night and one of the members suggested that Investors could/may claim Premiums for "Income Protection Insurances" & "Health insurances" as a tax deduction against their investments income. Is this legally able to be done and can you shed any more light on it for us?

Happy Investing,
Rixter :)
 
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Reply: 1
From: Lotana Von Amor


Rixter,

While Dale is thinking over his answer:) ...

Income protection insurance premiums are tax deductible because compensation payments are taxable income.

Cheers,

Lotana
 
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Sim

Administrator
Reply: 1.1
From: Sim' Hampel


Personally, I can't think of an argument to put forward to the ATO as to why Health Insurance should be tax deductible. It is essentially a personal expense.

I'd love to be proven wrong on this though !!!!!!!!!

sim.gif
 
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Reply: 2
From: Dale Gatherum-Goss


Hiya Rixter!

>
>I was at a Investment meeting
>the other night and one of the
>members suggested that
>Investors could/may claim
>Premiums for "Income
>Protection Insurances" &
>"Health insurances" as a tax
>deduction against their
>investments income. Is this
>legally able to be done and
>can you shed any more light on
>it for us?


Income protection insurance can be paid from a company. However, the income that comes in will be taxable income, as Lotana has pointed out.

Health Insurance can also be paid by a company, but, I would expect it to create FBT complications in the process.

Honest answer, I wouldn't bother myself.

Have fun

Dale
 
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Reply: 2.1
From: Rixter ®


Dale just to clarrify because you mentioned companies....So I can claim my Personal Income Protection Insurance annual premiums agaist my personal investments income?

Happy Investing,
Rixter :)
 
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Sim

Administrator
Reply: 2.1.1
From: Sim' Hampel


Last company I worked for paid for our health insurance (top level HCF cover... worth about $3000 if we'd paid for it ourselves !!!), on our group certificate statements was an entry indicating the "grossed up" amount of about $4000 for FBT purposes. So I think you are correct about the FBT implications Dale.

sim.gif
 
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Reply: 2.1.2
From: Dale Gatherum-Goss


Hi Rixter

Yes, you can under other deductions rather than Work related deductions.

Have fun

Dale
 
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W

WebBoard

Guest
Reply: 2.1.2.1
From: Andrew S


You already get your 'deduction' for your health insurance - Its the 30% rebate.

Don't expect the government to give you more than that.

Regards,

Mr Jolly

- "Don't look at things and ask why, look at things and ask why not"
 
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Sim

Administrator
Reply: 2.1.2.1.1
From: Sim' Hampel


On 6/6/02 8:08:00 PM, Mr Jolly wrote:
>You already get your
>'deduction' for your health
>insurance - Its the 30%
>rebate.

It's not a deduction, it's a rebate... very different things. It is also something that will not last for very much longer.

>Don't expect the government to
>give you more than that.

I can and I will expect more. But I also won't cry if they don't cough up. Oh, okay... maybe just a little.

sim.gif
 
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W

WebBoard

Guest
Reply: 2.1.2.1.1.1
From: Andrew S


Sim,

I do realise that it's a rebate.
I was suggesting that as the government is already giving you something (in the form of a rebate), don't expect to get a deduction as well.

Regards,

Mr Jolly

- "Don't look at things and ask why, look at things and ask why not"
 
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