You can claim the cost of premiums you pay for insurance against the loss of your income. You must include any payment you receive under such a policy on your tax return.
If the policy provides benefits of an income and capital nature, only that part of the premium that relates to the income benefit is deductible.
You can’t claim a deduction for a premium or any part of a premium:
- for a policy that compensates you for such things as physical injury
- if the policy taken out is through your superannuation and insurance premiums are deducted from your super contributions.
For example, you can’t claim a deduction for:
- life insurance premiums
- trauma insurance premiums
- critical care insurance premiums.