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Picture Book · Insurance

Income protection and tax: who pays matters

Story pages

A woman in her thirties at a home office desk paying a bill on her phone
Meet Nina. She holds income protection outside super and pays the premiums from her own bank account.
The woman filing a neat folder into a wooden drawer at her home desk
The ATO says premiums you pay to insure against losing your salary or wages are generally tax deductible.
Two piggy banks side by side
If the cover is through your super fund and the premiums are deducted from your contributions, you can't claim a deduction.
Three closed umbrellas leaning against a wall beside a front door
Premiums for life, trauma and critical care insurance aren't deductible.
The woman receiving an envelope from a friendly postie at her front gate
If you receive payments that replace your salary or wages, you include them as income in your tax return.
The woman chatting with a friend over coffee at a cafe table
The details depend on your policy. Check the ATO's guidance or speak with a registered tax agent.

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General advice warning. This picture book is general information only. It does not take into account your objectives, financial situation or needs, and it is not personal advice. Rules and thresholds change. Before acting, consider whether it is right for you, read any relevant Product Disclosure Statement and our Financial Services Guide, and seek personal advice. Past performance is not a reliable indicator of future performance.

Information as at 27 October 2026. Sources:

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