If you’re a business or rental property owner, you may need to declare some insurance payments in your income tax and GST returns. These could affect the amount of tax you pay. For example, the following insurance payments are taxable:
- loss of profits
- loss of rents
- reimbursement of business expenses
- destroyed or depreciated assets.
Some common mistakes might be not declaring insurance payments as income, not accounting for GST or not returning depreciation recovered when the payment is for a depreciable asset.
To avoid errors, you should keep all records relating to insurance payments for your business or rental property or ask your accountant or tax agent for help with understanding your tax obligations.
To find out more about insurance payments and your business, please email Greg (firstname.lastname@example.org) or Vanessa (Vanessa.email@example.com) or phone them on +64 9 520 9200.