Deductibility of insurance policies

Deductibilityof insurance policies

Insurance premiums are deductible to complying Superfunds as follows:
 
Term life or Total permanent disability:    100%
Income Protection:                                        100%
Whole of life:                                                    30%
Endowment;                                                     10%
 
When the Insurance policy is set up in SuperFund, the type of policy needs to be annotated. To set up the Insurance Policy from the Members menu, click Insurance Policies.

 
The premium is processed from the Transactions menu, by pointing to Expenses and clicking Insurance Policies. 

 
 The full amount is allocated for accounting purposes to get the "accounting" profit:
  

 
The Tax Reconciliation report adds back the portion that is not an allowable deduction. In this case, it is a whole life policy, therefore only 30% is allowed and 70% has to be added back.
 
  

Program and version

SuperFund, all versions