Six Tax Deductions Worth Raising With an Accountant

Written by Christopher Hall, AdvDipFP | Authorised Representative, AFSL 526688 | June 2026

Six tax deductions Australians most often miss are ones worth raising directly with an accountant — and several go unclaimed not because an accountant overlooked them, but because they depend on how a policy, contribution, or asset was structured long before the tax return was ever prepared:

• The income protection premium held personally — which an accountant can claim, but only where the policy is owned and paid for in the right structure first.

• Life and TPD cover funded through superannuation — a fund-level deduction, not a personal one.

• Salary sacrifice super versus a voluntary (personal deductible) contribution — two routes to the same $30,000 concessional contributions cap, suiting different circumstances.

• Carry-forward (catch-up) concessional contributions — using unused cap amounts from earlier years.

• The investment property depreciation schedule — prepared by a quantity surveyor, not the accountant.

• The ownership structure behind insurance and investments — the clearest handoff between an accountant and a licensed adviser.

In the experience of Christopher Hall, AdvDipFP, Authorised Representative, AFSL 526688, who has completed 500+ life insurance policy reviews across Australian families, the majority of clients presenting for review are unaware of the ownership-structure advantages that decide whether several of these deductions are even available to claim.

A good accountant claims what is in front of them. This article sets out which of these an accountant is well placed to raise, which sit with a different professional entirely, and where the line between tax preparation and financial structuring falls. It is written as general information — the deductions that apply to any individual depend on their circumstances and are a matter for a registered tax agent or a licensed financial adviser, depending on the item.

Where does an accountant's role end and an adviser's begin?

The reason these deductions slip through is structural, not a matter of diligence. A registered tax agent works with the arrangement as it exists at 30 June — the policies that are held, the way contributions were made, the assets that earn income. Several of the deductions below turn on decisions made before that point: who owns an insurance policy and pays for it, whether a contribution was made in a deductible form, how cover is funded through superannuation. Advice on those structures requires specific licensing that tax-return preparation does not carry.

Christopher Hall describes the resulting gap as a near-universal one. Across his review practice, the majority of clients are unaware of the two central ownership-structure advantages that sit behind well-arranged cover: that life and total and permanent disability (TPD) premiums can be paid through superannuation to preserve personal cash flow, and that income protection premiums held personally may be tax-deductible. In his experience this is a systematic failure in how policies were originally set up — often through a non-advised channel, and never revisited — rather than an edge case. It is the clearest illustration of why the most useful tax conversations often have two professionals on either side of them.

"Most clients I review have never been told that income protection held personally may be deductible, or that life and TPD can be funded through super — not because their accountant missed it, but because no one set the structure up to make it possible." — Christopher Hall

Which six deductions are worth raising — and who owns each?

The first four items below sit closest to Arrow Equities' work — insurance and superannuation structure. The last two are flagged because they are routinely missed, with a note on which professional owns each.

1. Can an accountant claim a personally held income protection premium?

Income protection premiums paid from a policyholder's own pocket — for cover held personally, outside superannuation — may, depending on individual circumstances, be claimed as a personal tax deduction, because they are paid to protect assessable income (ATO, 2026). The deduction applies only to the part of a premium that protects income: where a policy also funds a lump sum or a benefit of a capital nature, that portion is not deductible (ATO, 2026). Because the premiums are deductible, the benefits are treated the other way — income protection payments received to replace salary or wages are generally assessable and must be declared as income (ATO, 2026).

The catch an accountant cannot resolve is upstream of the return: the deduction is only available if the policy is owned and paid for in the right structure in the first place. A policy funded inside superannuation generally cannot be claimed personally, because the policyholder has not paid the premium from their own after-tax income (ATO, 2026). In Christopher Hall's experience across 500+ policy reviews, this is the single feature policyholders most often fail to claim — typically because no one confirmed how the policy was held before the premiums started. The full mechanics of who can claim, and on which portion, are covered in Arrow Equities' guide to whether income protection is tax deductible in Australia. Policyholders unsure whether their cover is structured to allow the deduction may wish to confirm the position with a qualified adviser or accountant.

2. Is life and TPD cover funded through superannuation deductible?

This is the deduction most Australians have never heard exists, and the one a tax agent is least likely to raise — not through any oversight, but because advice on superannuation insurance structure sits outside the scope of standard tax-return preparation and requires specific licensing.

Where life and TPD cover is held inside a complying superannuation fund, the fund — not the member personally — may be entitled to claim a deduction for the premiums it pays to provide death or disability benefits (ATO, 2026). This is a different mechanism from a personal deduction: it sits with the fund, and members generally cannot claim these premiums on their own return. It is one reason life and TPD cover is frequently funded through super while income protection is often held personally — the two halves of the ownership-structure decision between holding insurance inside super or personally. This item is general information, not a recommendation that structuring cover this way suits any particular reader. Whether it is appropriate depends entirely on an individual's circumstances and is a question for a licensed financial adviser.

3. Salary sacrifice super or a voluntary contribution — which suits whom?

For Australians wanting to add to super before 30 June, there are two routes to the same concessional treatment, and which suits whom is a circumstance-specific question rather than a default. Salary sacrifice diverts pre-tax salary into super through an employer arrangement; a voluntary personal contribution is made from after-tax money and then claimed as a deduction by lodging a Notice of Intent to claim with the fund and receiving its acknowledgement (ATO, 2026). Both are concessional contributions, and both count toward the same annual concessional contributions cap of $30,000 for 2025–26 (ATO, 2026).

The practical differences are what an accountant and an adviser are each placed to weigh. Salary sacrifice has to be arranged with an employer in advance and suits a steady, planned approach across the year; a personal deductible contribution can be decided closer to 30 June, which suits variable or late-arriving income — but it is timing-sensitive, because the contribution must reach the fund before the financial year ends and the Notice of Intent must be lodged in the approved form before lodging the return (ATO, 2026). For higher-income earners there is a further layer: where combined income and concessional contributions exceed $250,000, an additional 15% Division 293 tax applies to the contributions (ATO, 2026), which can change the calculation. The mechanics are a registered tax agent's territory; how a contribution strategy fits alongside cover and cash flow is an adviser's.

4. What are carry-forward (catch-up) concessional contributions?

A lesser-known extension of the same cap rewards anyone who has had a lower-contribution period. Australians with a total superannuation balance below $500,000 at 30 June of the previous year can use unused concessional contributions cap amounts from up to the previous five financial years, in addition to the standard $30,000 cap for 2025–26 (ATO, 2026). Unused amounts are available for five years and then expire (ATO, 2026).

This is particularly relevant after parental leave, a career break, or the early years of a career, where the cap went unused. Like a standard personal deductible contribution, claiming it requires a Notice of Intent lodged with the fund, and the amount counts toward the concessional cap — so the available headroom and the timing are best confirmed with an accountant or adviser before contributing.

5. Who prepares an investment property depreciation schedule?

For owners of an income-producing property, depreciation is one of the larger non-cash deductions available, and it is the one most likely to require a professional an accountant will refer out to. Two separate mechanisms apply: capital works deductions on the building's structure, claimable at the statutory rate of 2.5% a year over 40 years for eligible construction (ATO, 2026), and the decline in value of plant and equipment items such as ovens, air conditioners, and carpet (ATO, 2026).

The reason it is raised here is that the deduction usually starts with a document an accountant does not produce: a depreciation schedule, prepared by a qualified quantity surveyor, that itemises the claimable amounts for the life of the property. A material limitation also applies — in most cases, deductions for second-hand plant and equipment in residential rental properties are not available for assets acquired after 1 July 2017 (ATO, 2026), so the schedule matters most for newer or substantially renovated properties. Whether a schedule is worthwhile, and what it will yield, is best confirmed with a quantity surveyor and a registered tax agent.

6. Why does ownership structure decide what is deductible?

The final item is less a single deduction than the thread running through several of the others, and it is the clearest handoff between the two professions. Whether an income protection premium can be claimed, whether life and TPD cover is funded in the most cost-effective place, whether an asset is held by the person whose marginal rate makes a deduction most valuable — each of these is set by ownership structure, decided before a return is prepared, and each sits in advice territory rather than tax-preparation territory.

In Christopher Hall's experience, the combined cost of getting ownership structure wrong is real and recoverable rather than theoretical — and because contributions to superannuation are taxed at the concessional rate of 15% inside the fund, lower than most working Australians' marginal tax rate, the structure that cover and contributions sit in changes their net cost materially. None of this is a recommendation that any particular structure suits any particular reader; it is the reason a tax conversation and a structuring conversation are different conversations. A licensed financial adviser confirms the structure; a registered tax agent claims what that structure makes available.

Where do these deductions fit in a wider review?

The pattern across all six is that they turn on structure and records rather than obscurity — they are missed because no one revisited the arrangement, not because the rules are hidden. That is most true of the insurance and superannuation items, where the deduction depends on a decision made years earlier. The same items appear on the broader list of end-of-financial-year deductions Australians commonly miss; the difference here is the boundary — which of them an accountant is placed to raise, and which need a licensed adviser to set up first.

In Christopher Hall's experience, the policyholders most likely to be missing the insurance-related deductions are those whose cover was arranged once and never reviewed — the same cohort most likely to be paying more than current market rates on an ageing policy. A professional insurance premium review examines both the cost of cover and the structure it is held in, including whether an income protection premium is positioned to be claimed where eligible and whether life and TPD cover is funded in the most appropriate way. For the tax items — depreciation, contribution caps, the mechanics of a claim — a registered tax agent remains the right professional to confirm what applies. Whether the question is salary sacrifice super versus a voluntary contribution, a depreciation schedule, or how a policy is owned, the same division holds: a licensed adviser confirms the structure, and a registered tax agent claims the result.

Frequently asked questions

What deductions does an accountant usually not raise?

The deductions most often left unraised are those that depend on financial structure rather than the year's records — chiefly the personally held income protection premium, life and TPD cover funded through superannuation, and contribution strategies such as salary sacrifice or carry-forward concessional contributions. These are not oversights: advice on superannuation and insurance structure requires specific licensing that tax-return preparation does not carry, so they sit with a licensed financial adviser. A registered tax agent then claims what that structure makes available.

Is salary sacrifice or a voluntary personal contribution better for super?

Neither is universally better — both are concessional contributions counting toward the same $30,000 cap for 2025–26 (ATO, 2026). Salary sacrifice is arranged with an employer in advance and suits a steady approach; a voluntary personal contribution is made from after-tax income and claimed via a Notice of Intent, which suits variable or late income but must reach the fund before 30 June (ATO, 2026). Which suits an individual depends on their circumstances and is best confirmed with a qualified adviser or accountant.

What is a carry-forward concessional contribution?

A carry-forward (catch-up) concessional contribution lets a person use unused concessional cap amounts from up to the previous five financial years, on top of the standard $30,000 cap, provided their total superannuation balance was below $500,000 at 30 June of the previous year (ATO, 2026). Unused amounts expire after five years (ATO, 2026). It is particularly relevant after a period of lower contributions, and claiming it requires a Notice of Intent lodged with the fund.

Is income protection tax deductible, and who confirms it?

Income protection premiums paid personally, for cover held outside superannuation, may — depending on individual circumstances — be claimed as a personal tax deduction, because they are paid to protect assessable income (ATO, 2026). The deduction applies only to the income-protecting portion of the premium, and premiums for cover held inside super are treated differently. Whether a specific policy qualifies depends on how it is owned and paid for — a question for a qualified adviser, with the claim itself confirmed by a registered tax agent.

Do I need an accountant or a quantity surveyor for property depreciation?

Both, in sequence. A qualified quantity surveyor prepares the depreciation schedule that itemises capital works (claimable at 2.5% a year over 40 years for eligible construction) and plant and equipment deductions for the property (ATO, 2026); a registered tax agent then applies that schedule in the return. Deductions for second-hand plant and equipment in residential rental properties are generally unavailable for assets acquired after 1 July 2017 (ATO, 2026), so a schedule is most valuable for newer or substantially renovated properties.

Why does ownership structure affect what I can deduct?

Whether a deduction is available often depends on who owns an asset or policy and how it is paid for — decisions made before a tax return is prepared. A personally held, personally paid income protection premium may be deductible; the same cover funded inside super generally is not (ATO, 2026). Because superannuation contributions are taxed at the concessional rate of 15% inside the fund, the structure cover and contributions sit in also changes their net cost. Confirming the structure is a licensed adviser's role; claiming the result is a registered tax agent's.

Can income protection premiums be claimed if they are paid through super?

Generally no. Where income protection is held inside superannuation and the premiums are paid from super contributions rather than a policyholder's own after-tax income, those premiums cannot be claimed personally (ATO, 2026). The deduction is generally available only for cover held personally, outside super. Which structure suits an individual depends on their circumstances and is best confirmed with a qualified adviser or accountant.

What is the concessional contributions cap for 2025–26?

The standard concessional (before-tax) contributions cap for 2025–26 is $30,000 (ATO, 2026). Both salary sacrifice and personal deductible contributions count toward it. Carry-forward unused cap amounts from up to the previous five years may also be available where the total superannuation balance was below $500,000 at 30 June of the prior year (ATO, 2026). Eligibility is best confirmed with a registered tax agent or adviser.

What is Division 293 tax?

Division 293 is an additional 15% tax on concessional super contributions for higher-income earners — it applies where a person's combined income and concessional contributions exceed $250,000 (ATO, 2026). It reduces the tax concession on those contributions but does not remove it. Whether it applies, and how it affects a contribution decision, is a question for a registered tax agent.

Book a quick review with an adviser

Book a quick review with an adviser now. A professional review of how life, TPD and income protection cover is structured examines whether an income protection policy is held and paid for in a way that allows the premium to be claimed where eligible, whether life and TPD cover is funded in the most appropriate place, and how the cost of existing cover compares with current market rates.

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About the Author

Christopher Hall, AdvDipFP, is the principal financial adviser at Arrow Equities and an Authorised Representative under AFSL 526688. He has completed more than 500 life insurance policy reviews for Australian families, with a specialisation in life risk insurance.

References

• Australian Taxation Office (ATO) — Income protection insurance (deductions you can claim; amounts you must declare).

• Australian Taxation Office (ATO) — Deductions for APRA-regulated super funds / SMSF insurance premium deductions (fund-level death and disability premiums).

• Australian Taxation Office (ATO) — Personal super contributions, Concessional contributions cap, and Notice of intent to claim or vary a deduction for personal super contributions ($30,000 cap 2025–26; 5-year carry-forward; total super balance below $500,000).

• Australian Taxation Office (ATO) — Division 293 tax (additional 15% tax where combined income and concessional contributions exceed $250,000).

• Australian Taxation Office (ATO) — Capital works deductions and Depreciating assets in rental properties (2.5% capital works rate over 40 years; plant and equipment; second-hand depreciating asset rules from 1 July 2017).

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