Who gets the tax deduction on insurance premiums

 Author: RachelATO(Community Moderator)Community Moderator

30 Nov 2025

Hi @MG42,

You can only claim a deduction for income protection insurance on a policy that protects your own income.

If you pay premiums on a policy that covers your spouse’s income (even if you’re the policy owner), you can’t claim a deduction, because the policy doesn’t relate to income you earn.

The person whose income is insured (your spouse) would generally be entitled to claim the deduction, but only if they pay the premiums themselves.

So in short:

• If you pay the premiums for a policy covering your spouse, you don’t get the deduction.
• If your spouse pays the premiums for their own income protection policy, they can claim the deduction.

You can only claim a deduction for the portion of the premium that covers income protection (protection against loss of salary and wages). If the policy also covers other things like personal injury, trauma, or life insurance, those portions aren't deductible.

The key requirement is that the deduction must relate directly to the income you're earning.