If you’ve ever received personal financial advice about insurance, there’s good news – a recent change means that part of your advice fee may now be tax-deductible.
The ability to claim a deduction on fees for advice relating to personal insurance held outside of superannuation was previously unclear. But updated guidance has now confirmed that, in many cases, you can claim a deduction when the advice is focused on protecting your ability to earn income.
What’s now deductible?
You may be able to claim a tax deduction for advice fees paid for personal recommendations about:
- Income protection insurance
- Life insurance
- Total and permanent disability (TPD) cover
- Trauma or critical illness insurance
The policy must be held outside of superannuation, and the advice must be personal – tailored to your specific circumstances and focused on managing financial risk. Advice about growing wealth or retirement planning does not qualify.
Why this matters
This is great news for clients. It means you may now be able to reduce your tax bill while ensuring your personal insurance needs are properly covered. If you’ve recently paid for insurance advice – or are planning to – this change could make that advice even more valuable.
To qualify, the deductible portion of the advice fee must be clearly identifiable – either as a separate item or as a distinct component within a broader advice package.
How LINK helps
At LINK, we carefully structure our advice fees to ensure they meet current tax guidelines. Where appropriate, we’ll also coordinate with your accountant to ensure any eligible deductions are correctly claimed.
If you’re unsure whether a past advice fee may now be deductible – or you’re due for a personal insurance review – speak to your LINK Wealth Advisor. We’re here to help you protect what matters most and make the most of every opportunity to reduce tax.