myTax 2024 Bonuses from life insurance companies and friendly societies

Things to know

Complete this section if you received a bonus because your life insurance policy or friendly society insurance bond matured, was terminated, forfeited or surrendered in full or in part.

Life insurance policies are issued by life insurance companies and friendly societies.

You may need to include some or all of a bonus amount in your assessable income.

You need to include a bonus amount at this section if all the following conditions apply:

• within 10 years from the policy start or re-start date, you received the bonus amount, or directed how it is to be dealt with
• your life insurance policy or friendly society insurance bond matured, or was terminated, forfeited, or surrendered in full or in part
• the bonus amount was in addition to the premiums you paid to the life insurance company or friendly society.

You can't claim a loss if your life insurance policy or friendly society insurance bond matured or was partly or fully surrendered, terminated or forfeited.

If you are not sure whether you need to include your bonus, contact us.

If you received any bonus amounts distributed from friendly society income bonds, go to Other income.

Don’t show at this section

Don’t declare any bonuses as income where:

• you received it after the 10th year of the policy
• it came from life insurance policies that
  • you started before 28 August 1982
  • matured due to the death of the person insured
  • you surrendered due to an accident, illness or other disability of the person insured
  • you surrendered due to severe financial hardship
  • are retirement savings accounts
• you have received a statement detailing the bonus amount allocated to your continuing life insurance policy or friendly society bond, but you have not
  • actually received the bonus
  • directed how it is to be dealt with.

Completing this section

You will need your:

• life insurance policy and bonus advice
• friendly society policy and bonus advice.

To personalise your return to show bonuses from life insurance policies and friendly society bonds, at Personalise return select:

• You had other income not listed above (including employee share schemes).

To show your bonuses, at Prepare return select 'Add/Edit' at the Other income banner.

At the Any other income banner:

1. For each bonus from life insurance policies and friendly society insurance bonds, select Add.
2. At Type of payment, select Bonuses from life insurance and friendly societies, enter a description and an amount.
   From your bonus advice, enter 
   • the whole bonus amount you received in 2023–24 if you received it during the first 8 years of the policy
   • two-thirds of the bonus amount you received in 2023–24 if you received it during the 9th year of the policy, or
   • one-third of the bonus amount you received in 2023–24 if you received it during the 10th year of the policy.
3. Select Save.
4. Select Save and continue when you have completed the Other income section.

Tax offset

If you show a bonus from life insurance or friendly societies, you will get a non-refundable tax offset equal to 30% of the bonus amount. We will work out this tax offset for you.

Policy start date

Your policy start date is usually written on the policy or bond. Refer to your policy, bond or provider if you are unsure of your policy start date.

Reset of the policy start date

If you increased your premiums by more than 25% of premiums paid in the prior policy year, your policy start date is reset. Your policy start date is taken to start at the beginning of the policy year in which you paid the higher premiums.

This means that you may need to include some or all of a bonus amount in your assessable income.