Can Electricians Claim Income Protection Insurance Premiums in 2024-25?

For the 2024–25 income year (1 July 2024 to 30 June 2025), premiums paid for insurance against loss of income can be claimed, except where the policy was taken through super and the premium was deducted from super contributions; payments received under the policy for loss of income must still be included in the return. The Australian Taxation Office (ATO) myTax 2025 Other deductions guidance, updated 2 June 2025, sets out these rules and says records are generally kept for five years from the return lodgement date; figures checked 1 October 2026.

Can an electrician claim an income protection premium?

Yes, if the premium insures against loss of income and the super exception does not apply. The ATO lists income protection, sickness and accident insurance premiums among expenses that may be claimed at Other deductions, provided the expense has not been claimed elsewhere.

The important distinction is what the policy covers and pays for:

If a policy contains both income protection and physical-injury cover, the ATO says any part of the premium compensating for physical injury is not deductible. The cited guidance does not explain how to allocate a mixed premium, so check the policy’s Product Disclosure Statement (PDS) and the ATO page before claiming the whole amount.

Why must I still report the policy payment?

The premium deduction and the policy payment are separate return items. Claiming the cost of income protection does not remove a payment received under that policy from the income section.

For 2024–25, the ATO says to include a payment received under an income-loss policy at the applicable item among:

• Salary, wages, allowances, tips or bonuses
• Other income

Use the label that applies to the payment rather than treating it as a refund of the premium deduction.

What changes if the policy is through super?

The ATO exception depends on both the policy arrangement and how the premium was funded. You cannot claim a deduction where:

• the policy was taken through your super fund; and
• the premium was deducted from your super contributions.

Check your policy documents and contribution statements before entering the premium as a deduction. A policy being connected with super does not, by itself, answer the funding question—the ATO rule specifically refers to a premium deducted from super contributions.

How do I claim the premium in myTax?

For a 2024–25 return, the ATO gives the following process:

• Use the free myDeductions tool in the ATO app. myTax pre-fills other deductions uploaded through myDeductions.
• Check each pre-filled amount and add any deduction that has not pre-filled.
• In myTax, select Prepare return, then select Add/Edit at the Deductions banner.
• Under Other deductions, select Add.
• Select the relevant Type of deduction.
• Enter a short description and the Amount.
• Select Save, then select Save and continue when the Deductions section is complete.

Use Other deductions only where the expense has not already been claimed elsewhere.

What records and policy details should I check?

The ATO says records must generally be kept for five years from the date you lodge your tax return. A practical file should allow you to identify:

• what the policy covers and whether it is income protection, sickness and accident cover, or physical-injury cover;
• the premium paid and how it was funded;
• whether the policy was taken through super;
• each payment received under the policy and how it is reported; and
• the date you lodge the return.

This is general information, not financial or legal advice. Before claiming an amount, check the ATO guidance for the relevant income year and your policy’s PDS, particularly if the policy contains more than one type of cover.

Sources

• myTax 2025 Other deductions | Australian Taxation Office — updated 2 June 2025.

FAQ

Are income protection premiums deductible for electricians in 2024–25?

Yes, when the premium is paid for insurance against loss of income. The super exception does not apply, and no part of the premium that compensates for physical injury is deductible.

Do I include income protection payments in my tax return?

Yes. Any payment received under the policy for loss of your income must be included at the applicable Salary, wages, allowances, tips or bonuses item, or at Other income.

Are life, trauma and critical care premiums deductible?

No. The ATO identifies these as policy types for which premiums are not deductible.

Can I claim an income protection premium paid through super?

No, if the policy was taken through your super fund and the premium was deducted from your super contributions.

How long should I keep records?

The ATO says to keep records for five years in most cases from the date you lodge your tax return.