Are Income Protection premiums tax deductible?
Income protection insurance premiums are generally tax deductible if you hold the policy in your own name and pay the premiums with your own funds. If your policy combines income protection with other types of insurance, only the portion that covers your income is eligible for a deduction. Additionally, if your income protection is held and paid for by your super fund, the premiums are not tax deductible.
Tax rates for 2024/2025
Taxable Income Range Tax Rate Tax on this income 0 – $18,200 0% Nil $18,201 – $45,000 16% 16c for each $1 over $18,200 $45,001 – $135,000 30% $4,288 plus 30c for each $1 over $45,000 $135,001 – $190,000 37% $31,288 plus 37c for each $1 over $135,000 $190,001 and over 45% $51,638 plus 45c for each $1 over $190,000
