11 May 2023

EOFY: Have you checked if you are eligible to claim a tax deduction on your income protection insurance?

With EOFY fast approaching, you may want to check if you can claim a tax deduction for the cost of your income protection insurance premiums.

Please check with your accountant, or review your insurance policy, to determine what level of deduction you may be able to claim with the ATO.

And note only the premiums you pay to protect your income (salary and wages) are deductible and you can’t claim a deductions if the policy is through your superannuation fund.

Alternatively, if you don’t have income protection insurance in place, now may be the perfect time to explore a policy. 

Income protection can be the financial safety net you need if you experience an accident or illness that means you can no longer work. A common misconception about income protection insurance is that it’s only for high income earners, but this is not the case. 

Nobody wants to consider an accident or illness impacting their health suddenly, but it’s always a possibility. As well as changing your lifestyle, an unexpected illness could mean you need to take extended leave from work.

Up to 70% of your monthly income is provided for a nominated period of time to help keep your household up and running, and to provide for your loved ones while you recover. In a nutshell, it gives you the freedom to rest easy knowing you, and your family, will be taken care of financially.

Let’s chat and explore the options or if you need advice about income protection cover. 

SBA Risk Pty Ltd Trading As SBA Insurance is an Authorised Representatives of MBS Advice Licence Pty Ltd ABN 25 654 854 136 AFSL 536983. Any advice in this publication is of a general nature only and has not been tailored to your personal circumstances. Please seek personal advice prior to acting on this information.