myTax 2017 Bonuses from life insurance companies and friendly societies

You receive a bonus because your life insurance policy or friendly society insurance bond matured, or was terminated, forfeited, or surrendered in full or in part.

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

Do not declare as income:

• any bonus amounts received after the 10th year of the policy
• any life insurance bonuses from 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
   
• any benefits you received from a friendly society that are bonuses from income bonds; include these amounts in the Any other income section with the Type of payment as Other.

If 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 or directed how it is to be dealt with, do not include the bonus amount as income.

For more information, see Bonuses from life insurance companies and friendly societies.

Tax offset

You will get a tax offset equal to 30% of the amount you show at this item. We will work out this tax offset for you.

Completing this section

You will need:

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

1. For each bonus from life insurance and friendly societies, select Add.
2. At Type of payment, select Bonuses from life insurance and friendly societies and enter information into the corresponding fields.
   From your bonus advice, enter
   • the whole bonus amount you received in 2016–17 if you received it during the first eight years of the policy
   • two-thirds of the bonus amount you received in 2016–17 if you received it during the ninth year of the policy, or
   • one-third of the bonus amount you received in 2016–17 if you received it during the 10th year of the policy.
    

Do not include any bonus amount received after the 10th year of the policy.

3. Select Save.
4. Select Save and continue.

Instructions on completing your individual tax return using myTax.