Who can claim
This deduction is available to individuals.
- The premium protects against loss of assessable income and the corresponding policy benefit would be assessable.
What you cannot claim
- Life, trauma, total and permanent disability and other capital-benefit components are not deductible.
- Premiums paid through super are not deductible to you.
- Do not claim a premium your employer or another party provided, paid or reimbursed; if partly reimbursed, claim only the unreimbursed eligible portion.
- A taxable allowance does not create an income-protection deduction; the premium must independently qualify.
How the amount is worked out
Claim only the premium attributable to income-replacement cover.
Records the ATO expects
- Policy schedule
- Premium statement
- Apportionment if policy is bundled
Where this rule comes from
Primary source: ATO Employees guide for work expenses (Document version dated 5 December 2025). Reviewed 30 July 2026. Covers the 2025-26 and 2026-27 income years.