Identify the insured benefit
Personal-policy premiums paid for an employee are taxable. Qualifying group medical cover available to all staff, business-travel cover and work-injury compensation have non-taxable treatment. For group life, accident or critical-illness policies, contractual entitlement normally makes the employee’s share of premium taxable; the resulting insurance payout is a capital receipt. Without entitlement, premiums are not taxable, but a discretionary payout passed on may be remuneration unless an exception applies.
Electing the group-insurance concession
Eligible employers can forgo their business deduction for the relevant group premiums so the employee benefit is exempt. Investment-holding companies, tax-exempt bodies and cost-plus assessed service companies are excluded. Apply consistently to all covered employees. If reporting premiums, use a reasonable allocation method consistent across years; changes may require amended income records.
Official source
A concise, independent Apex Gateway guide based on the official English source, not a reproduction of the complete document. Consult the original for full conditions, exceptions and subsequent updates.
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