What business insurance is deductible in Australia?

Most types of business insurance are fully tax-deductible for sole traders, as they are considered a necessary cost of doing business. This includes: - **Public Liability Insurance.** - **Professional Indemnity Insurance.** - **Income Protection Insurance** (only the portion that covers your 'loss of income'; the part that covers 'death or trauma' is generally not deductible). - **Business Assets Insurance** (e.g., for your tools, stock, or equipment). - **Workers Compensation Insurance** (if you have employees). You cannot claim life insurance or trauma insurance as a business expense.

• Public liability and Professional indemnity are deductible
• Income protection (income part only) is deductible
• Asset and tool insurance is deductible
• Life insurance is NOT deductible
• Prepaying insurance (up to 12 months) can be a good tax strategy