Loading…
Consider these statements about insurance held outside super. (i) Income protection premiums an individual pays personally are generally tax deductible. (ii) Premiums for life cover an individual holds personally are generally tax deductible.
Statement (i) is true: the ATO allows a deduction for income protection premiums paid personally outside super, because the benefits replace assessable income (ATO, Income protection insurance). Statement (ii) is false: the ATO does not allow a deduction for life cover, trauma or TPD premiums held personally, as the benefits are capital in nature.
Deductibility follows whether the benefit replaces income.
Practise more Investment, debt and insurance advice strategies questions
Exam-style questions with worked answers, then full timed mocks. Free to start.
Build a daily practice habit — a few exam-style questions a day, with worked answers. Free to start.
Start practising →Original practice material mapped to the learning outcomes in ASIC's exam guidance. Independent, not affiliated with or endorsed by ASIC. Verify figures and rules against current guidance before relying on them.