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Tax deductions for insurance premiums owned by super but paid out of pocket.

I'm new

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Hi Guys,

 

Hoping someone can clarify this issue for me. 

 

I'm curious to know or atleast confirm my own thoughts about claiming insurance premium payments as tax deductions for policies owned by super but paid out of pocket.

 

Typically if an isurance policy owned by a super trustee is paid by super rollover but I've seen a few that are actually being paid out of pocket by credit card or bank account. This is technically a contribution to super and the insurance provider sends correspondence confirming as such and outlines the "POSSIBILITY" of these contributions aka premiums payments being claimed as tax deductions.  My issue with this is that the super fund is specifically for the purpose of holding the insurance policy and as such does not retain an active balance/withdrawal benefit. To my knowledge if claiming a tax deduction the funds must be retained in the account prior to the lodging of a notice of intent form and then the confirmation of reciept of said form. Any amount withdrawn prior will reduce the amount that can then be claimed as a tax deduction.

 

Clarification would be much appreciated as I've raised this with the insurers but they have no idea about the mechanics so won't provide any clarification.

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Most helpful response

Devotee

Replies 0

@CowsgoMooo the super fund owns the policy so you wouldn't be able to claim a deduction for it like you would income protection insurance in your own name. 

 

The payments would technically have to be listed as contributions into the fund. What are the fund reporting the contribution as - personal contributions. If they are and you meet the criteria then you it seems you could claim the personal deduction. 

https://www.ato.gov.au/Individuals/Super/In-detail/Growing-your-super/Claiming-deductions-for-person...

1 REPLY 1

Most helpful response

Devotee

Replies 0

@CowsgoMooo the super fund owns the policy so you wouldn't be able to claim a deduction for it like you would income protection insurance in your own name. 

 

The payments would technically have to be listed as contributions into the fund. What are the fund reporting the contribution as - personal contributions. If they are and you meet the criteria then you it seems you could claim the personal deduction. 

https://www.ato.gov.au/Individuals/Super/In-detail/Growing-your-super/Claiming-deductions-for-person...