Individual Tax Return Tips #6 – are you paying for Income Protection Insurance?

Once you get married, or have kids or have a mortgage, many people start paying income protection insurance in case that can’t work anymore but your income is reliant in the household. As it’s an income replacement insurance, the costs of you paying for income protection insurance is a tax deduction in your personal return.

Other insurance costs like life, trauma or TPD are not tax deductible (but you could possibly get a tax benefit if any of these were paid by your super fund, and you decided to choose to contribute funds into your super fund to help cover these costs (which the tax deduction will depend on your super tax deduction limits and what’s already been claimed for the year).

By Pat Hoey