Tax season 2015 – changes

With effect from 1 March 2015, disability income premiums and benefits will be taxed differently. Insurers will be modifying their disability income benefits in response to this, and we will let you know what these changes will be as soon as they are finalised. What we do know, however, is the following:

  • The effect on premiums: At the moment members pay tax on the disability income benefit premiums every month, but they can claim this back. From 1 March 2015 they will still pay tax on the premiums every month, but they will no longer be able to claim the tax back.
  • The effect on the benefit: At the moment, if one becomes disabled and the disability benefit is paid out, the benefit is taxed. From next year March, a disability income benefit paid out by an insurer will no longer be taxed.

Should you require more information, please contact your Associate or the office.

Thank you and regards, The TSA Team

You’ll find all back issues of TSA Connect by visiting our blog and you can do that by clicking here. All information provided in TSA Connect newsletters is intended to inform and explain, but please remember to always check the current terms on policies when considering options and advising clients.

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