My employer (Family Trust)paid my Life insurance thru super last year 2021. I am 67 years old and still working full time. This amount form part of the $27,500.00 allowed contribution. Is this allowed as expense for my employer or can I claim as my expense? Is there an age limit to life insurance cover?
Hi @Raffy1991PH,
Many thanks for the clarification!
Generally, insurance premiums are taken out of your super fund. In your scenario your employer is paying them directly into your super fund.
The payments aren't part of the super guarantee payment, they're to cover your insurance premiums and wouldn't be eligible deductions for you or the employer.
However, the employer is paying premiums the employee would otherwise be responsible for, This sounds more like a Fringe benefit. If it's a fringe benefit then employers can claim a deduction for the costs of providing a fringe benefit including the FBT they have to pay.
Hey @Raffy1991P
There's a bit to your question. Can you clarify what you mean by your employer is paying your life insurance? Are they paying super guarantee plus extra? Do you have a salary sacrifice arrangement?
The life insurance thru super was set up in 1998 by Westpac Life but now managed by BT. It was automatically deducted from the employer (Family Trust) bank account aside from the super guarantee being paid by the employer. It is always within amount of contribution allowed by ATO. Hope this will help.
Hi @Raffy1991PH,
Many thanks for the clarification!
Generally, insurance premiums are taken out of your super fund. In your scenario your employer is paying them directly into your super fund.
The payments aren't part of the super guarantee payment, they're to cover your insurance premiums and wouldn't be eligible deductions for you or the employer.
However, the employer is paying premiums the employee would otherwise be responsible for, This sounds more like a Fringe benefit. If it's a fringe benefit then employers can claim a deduction for the costs of providing a fringe benefit including the FBT they have to pay.
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