Insurance Premium Refunds

Discussion in 'Accounting & Tax' started by sage99, 22nd Jul, 2017.

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  1. sage99

    sage99 Active Member

    Joined:
    8th Jul, 2015
    Posts:
    32
    Location:
    Sydney
    We cancelled some insurance policies in 2017FY and received refunds for part of the premium. Where should this be included in our tax returns? I was thinking to offset it against insurance expenses but the refund is greater than the insurance expense for some properties. The next option is other income.

    I did call the ATO but the person I spoke to obviously didn't understand the concept and told me I can't claim the refund as an expense o_O so no help there.
     
  2. purplecat

    purplecat Well-Known Member

    Joined:
    8th Apr, 2017
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    133
    Location:
    Melbourne
    Refund put under your investment property income, and claim the insurance you already paid - hence only pay tax on the net difference

    Income you must declare
     
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    Either reduce the insurance expenses deduction or add to income as an adjustment. Effect is same.