Insurance tax deductions and rebates this EOFY
Getting your finances in order? Five ways to get more from your insurance this EOFY.
Don't pay more in tax than you have to. See which of your insurance premiums you can deduct or get a rebate on, so that you can get more back from the taxman this EOFY.
Health insurance premiums
Do you have private health insurance? While health insurance premiums are not tax deductible, you are able to claim a rebate on your premiums. The amount you can claim is dependent on your age and how much you earn. The rebates applicable to private health insurance from 1 April 2017 to 31 March 2018 are:
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| Singles | ≤$90,000 | $90,001-$105,000 | $105,001-$140,000 | ≥$140,001 |
| < age 65 | 25.93% | 17.29% | 8.64% | 0% |
| Age 65-69 | 30.26% | 21.61% | 12.97% | 0% |
| Age 70+ | 34.58% | 25.93% | 17.29% | 0% |
| Base Tier | Tier 1 | Tier 2 | Tier 3 | |
|---|---|---|---|---|
| Families | ≤$180,000 | $180,001-$210,000 | $210,001-$280,000 | ≥$280,001 |
| < age 65 | 25.93% | 17.29% | 8.64% | 0% |
| Age 65-69 | 30.26% | 21.61% | 12.97% | 0% |
| Age 70+ | 34.58% | 25.93% | 17.29% | 0% |
You can also save on your health insurance by reviewing the various promotions and offers available from private health insurers at this time of year.
Income protection insurance
Unlike your premiums for life insurance, total permanent disability (TPD) insurance or trauma insurance, you may be able to claim a deduction for your income protection premiums. We spoke with H&R Block's director of tax communications Mark Chapman, who said, "Premiums for income protection insurance are 100% tax deductible. However, the payments you receive from the policy are taxable as income."
| Premiums/payouts from policy | Outside super | Inside super |
|---|---|---|
Premiums you pay |
|
|
Payouts you receive |
|
|
*Benefits will be taxed if your premiums are tax deductible. Check with your super fund. Note: This table is only a general guide and doesn't take into account your specific circumstances. It's a good idea to seek professional advice from a qualified tax consultant before applying this information to your personal circumstances.
Travel insurance
Do you take out travel insurance when you travel for work? Can you claim a deduction for your single or annual policy premiums? "Yes, provided it relates solely to work. It would need to be prorated if it also covered any element of private travel,” says Chapman.
Car insurance
Just like how you can claim any car expenses when you use your own vehicle for work, you can also claim a tax deduction for the parts of your car insurance premiums that relate to the work use of your vehicle.
Rental property insurance
If you own an investment property, you may be able to claim a deduction for various premiums related to the property including:
- Buildings insurance
- Contents insurance
- Landlord insurance
Compare your health insurance options this EOFY
Latest health headlines
Picture: Shutterstock
