Income Protection Insurance Deduction

Tax position on income protection an income protection insurance permanent health insurance scheme can be established so that the employer will receive a proportion of the salary of an employee if the employee is unable to work because of ill health.

Income protection insurance deduction. Income protection insurance tax deductible premium costs are unique to income protection insurance in australia though they apply only if the benefit payments are paid as a regular payment to. If you are self employed it may be payable gross. However if you have a combined policy that is covering you for other benefits such as income protection with life insurance or trauma insurance then only the portion of the premium that is protecting your income is deductible. When is an income protection premium not tax deductible.

When you hold an income protection policy in your name. The premiums are generally tax deductible. If you are employed the life assurance company will deduct tax and social insurance payments from your benefits in the same way that your employer would. Tax relief on income protection.

Income protection premiums up to certain limits qualify for tax relief at your marginal rate.