Income protection and business expenses insurance

Ownership/Purpose

Tax treatment

Premiums

Benefits

Individual to protect against loss of own income – premiums paid by individual

Deductible

Generally assessable as ordinary income to individual

Individual to protect against loss of own income – premiums paid by employer

Generally deductible to employer

Generally assessable as ordinary income to individual

Trustee of super fund to provide benefits for insured member7

Deductible to extent insured events align with SIS temporary incapacity definition

Payment to fund:

Payment from fund:

Business entity to protect against loss of income or for business expense purposes

Deductible

Generally ordinary income of business entity