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Re: Income Protection Insurance

Devotee

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Replies 2

Hi community pls assist me.

 

Assume that an individual has received a 15% rebate on an income protection premium paid out through a super rollover.

 

Is it possible for that person to cliam the 85% of the premium in the personal ITR under d15 ?

 

If so what is the reason for allowing such a deduction ?

 

Thank you 

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Most helpful response

Devotee Registered Tax Practitioner

Replies 1

Assume that an individual has received a 15% rebate on an income protection premium paid out through a super rollover.

 

Is it possible for that person to cliam the 85% of the premium in the personal ITR under d15 ?

 

If super fund owns the policy, then cost of the policy is a deduction for the fund.

The fund's tax rate is 15%  -   no benefit directly to the member.

The individual named on the poclicy would have no claim at all on their personal ITR.

 

If the policy is not owned by the fund, then the fund should not be paying the premiums.

 

There are a number of reasons why income protection insurance is best paid and claimed by the person named on the policy.

 

2 REPLIES 2

Most helpful response

Devotee Registered Tax Practitioner

Replies 1

Assume that an individual has received a 15% rebate on an income protection premium paid out through a super rollover.

 

Is it possible for that person to cliam the 85% of the premium in the personal ITR under d15 ?

 

If super fund owns the policy, then cost of the policy is a deduction for the fund.

The fund's tax rate is 15%  -   no benefit directly to the member.

The individual named on the poclicy would have no claim at all on their personal ITR.

 

If the policy is not owned by the fund, then the fund should not be paying the premiums.

 

There are a number of reasons why income protection insurance is best paid and claimed by the person named on the policy.

 

Devotee

Replies 0

@Bruce4Tax Much thanks