Who can claim
This deduction is available to individuals and companies.
- The expense is incurred in carrying on an existing income-producing business.
- Any private, capital or non-income-producing component is reasonably apportioned or excluded.
- The policy protects the business or its income-producing activities.
What you cannot claim
- Do not include private drawings or personal expenses.
- Do not treat a capital asset, improvement or acquisition cost as an ordinary operating expense.
- Personal, capital-benefit and private-use components are excluded or apportioned.
- Prepaid premium timing rules can apply.
- Enter vehicle insurance once: do not also include it in a business-car actual-cost or logbook amount.
- Workers compensation premiums belong under payroll tax and workers compensation premiums.
How the amount is worked out
Claim the deductible business-risk component for the relevant period, without duplicating vehicle insurance or employment on-costs recorded under another rule.
Records the ATO expects
- Policy schedule
- Premium invoice
- Payment record
- Apportionment calculation
Where this rule comes from
Primary source: ATO business income and deductions (Updated 1 June 2023). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.