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Are home insurance claim payouts taxable?

According to the Australian Taxation Office (ATO), home insurance claim payouts are not considered income and so do not need to be declared in your tax return.

However, if part of your home is used for a business, the insurance payout may need to be taken into account for capital gains tax purposes.

Also, if you’re registered for GST and entitled to claim an input tax credit (ITC) on your premium, you’ll need to notify us of this entitlement each time you claim.

The claim settlement amount we pay you may be reduced to reflect your ITC entitlement.

Note: Qantas Home Insurance does not insure all types of business use; to find out whether your business use is acceptable, contact us on 13 49 60.

This information was obtained from the Australian Taxation Office (ATO) and was correct as of 1 November 2019. For more information, visit the ATO’s ‘Insurance payouts’ web page and/or speak to a tax advisor or accountant.

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