(a)        Income Protection Insurance Premiums

 

On 1 January 2020, Barry took out a 12-month sickness and accident insurance policy with Real Life Insurance to insure himself against the loss of income in the event of serious illness or an accident. He paid $1,800 for this policy. The policy was in respect of the period 1 January 2020 (12:00 am) to 31 December 2020 (11:59 pm).

 

(b)       Concessional and Non-Concessional Personal Superannuation Contributions

 

 Barry advises you that apart from the compulsory 9.5% superannuation contributions made by his employer, The Brisbane Telegraph Ltd, into his AMP superannuation fund during the 2020 income year, he also made pre-tax salary sacrifice (ie. concessional) superannuation contributions of $6,500 into his complying superannuation fund.

 

This amount has correctly been reported by his employer on his 2020 Income Statement as a “reportable employer superannuation contribution” (see Item 1).

 

            Furthermore, in addition to these pre-tax superannuation contributions, Barry also advises you that throughout the 2020 income year, he made after-tax (ie. non-concessional) superannuation contributions of $2,200 into his AMP superannuation fund.

 

All of the relevant paperwork has been processed by the superannuation fund including acknowledging Barry's written intention to the superannuation fund regarding claiming these post-tax superannuation contributions as a tax deduction in his own personal tax return as well as the superannuation fund's acknowledgement.

 

All of Barry’s pre-tax and post-tax cash superannuation contributions were received by the AMP superannuation fund prior to 30 June 2020. Barry's last superannuation contribution made into the AMP superannuation fund was on 28 June 2020.

 Details relating to the superannuation fund are outlined below:

 

Name of Superannuation Fund:                     AMP Superannuation Fund

Fund’s Australian Business Number:              39 780 311 675

Fund’s Tax File Number:                                188 128 215

Barry’s Account Number:                               517889

 

Important Tip Relating to Entering Information for Item 14 into HandiTax

 

Please enter the details for any claims relating to the following possible deductions (ie. item 14 below) directly into the relevant label in HandiTax.

Answer rating: 100% (QA)

Solution a Income Protection Insurance Premiums You can claim the cost of any premiums you paid for ... View the full answer