Aussies fail to see life's tax benefits
A large proportion of Australians aged 18 to 59 are unaware of the tax benefits associated with life insurance and income protection, a recent survey commissioned by MLC Protection has found.
A large proportion of Australians aged 18 to 59 are unaware of the tax benefits associated with life insurance and income protection, a recent survey commissioned by MLC Protection has found.
According to a Newspoll survey, 71 per cent of respondents are not aware that life insurance may be tax deductible and only 17 per cent of people had income protection despite its generous tax treatment.
On the other hand, more than 80 per cent of those interviewed knew that work uniforms and home PCs used for work could be tax deducti-ble.
"This highlights the need for financial planners to offer greater consumer education and encourage investors to think more strategi-cally about protecting their accumulated wealth," says MLC Protection general manager for marketing Michael Browne.
"The potential is enormous for the industry and for advisers, armed with knowledge and a greater understanding of the market, to re-package insurance products as an integral component of tax effective wealth accumulation strategies."
Other interesting findings of the survey are that people aged 35-49 are more likely to have life insurance and income protection, as are those earning more than $50,000.
In addition, 28 per cent of those who currently have no life insurance, are more likely to purchase a policy after hearing about tax benefits and rebates. And, once informed, those aged between 35 to 59 were the most likely to buy a policy.
Recommended for you
Financial Services Minister Stephen Jones has shared further details on the second tranche of the Delivering Better Financial Outcomes reforms including modernising best interests duty and reforming Statements of Advice.
The Federal Court has found a company director guilty of operating unregistered managed investment schemes and carrying on a financial services business without holding an AFSL.
The Governance Institute has said ASIC’s governance arrangements are no longer “fit for purpose” in a time when financial markets are quickly innovating and cyber crime becomes a threat.
Compliance professionals working in financial services are facing burnout risk as higher workloads, coupled with the ever-changing regulation, place notable strain on staff.
