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Life Insurance Bond

Newbie

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Replies 1

Hello,

 

I have a regulated life policy in Mauritus. The annual premium will not increase by more than 25% in any year and the policy will be held for more than 10 years before I start to make withdrawals in Australia. 

 

I understand that overseas life policies are recognised by the ATO, and that the bonus will not be assessable and does not need to be included in my return.

 

Kindly confirm that a regulated life policy in Mauritius is indeed recognised by the ATO.

 

Thank you

1 ACCEPTED SOLUTION

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Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @Piers,

 

We can confirm that in regards to life insurance policies, you don't need to declare any income for:

bonus amounts received after the tenth year of the policy
• life insurance bonuses from policies that
    • you started before 28 August 1982
    • matured due to the death of the person insured
    • you surrendered due to an accident, illness or other disability of the person insured
    • you surrendered due to severe financial hardship
    • are retirement savings accounts

• benefits you received from a friendly society that are bonuses from income bonds; include these amounts at item 24 Other income 2020.

 

The country in which the policy is held isn't regarded as an eligibility requirement Smiley Happy


ATO website- Bonuses from life insurance companies and friendly societies

Forum post- Cash bonus/ Interest on Life Insurance Policy

 

RachATO

1 REPLY 1

Most helpful response

ATO Certified Response

ATO Community Support

Replies 0

Hi @Piers,

 

We can confirm that in regards to life insurance policies, you don't need to declare any income for:

bonus amounts received after the tenth year of the policy
• life insurance bonuses from policies that
    • you started before 28 August 1982
    • matured due to the death of the person insured
    • you surrendered due to an accident, illness or other disability of the person insured
    • you surrendered due to severe financial hardship
    • are retirement savings accounts

• benefits you received from a friendly society that are bonuses from income bonds; include these amounts at item 24 Other income 2020.

 

The country in which the policy is held isn't regarded as an eligibility requirement Smiley Happy


ATO website- Bonuses from life insurance companies and friendly societies

Forum post- Cash bonus/ Interest on Life Insurance Policy

 

RachATO