Yes, Income Protection insurance premiums are generally tax deductible in Australia if you pay them from your after-tax income (outside of superannuation). This is one of the key advantages of IP insurance and makes it more affordable than the premium cost might initially suggest. For example, if you're in the 32.5% tax bracket and pay $2,000 in annual IP premiums, your actual after-tax cost is only $1,350. However, there's a trade-off: because the premiums are tax deductible, any benefits you receive are taxable as income. You'll need to pay income tax on the benefit payments, though you can claim the standard tax-free threshold and any applicable deductions. If you hold IP insurance within superannuation, the premiums are paid from pre-tax super contributions, so you don't claim them as a personal tax deduction. It's important to keep records of your premium payments and declare them correctly in your tax return. Consult with a tax professional or financial adviser to understand how this applies to your specific circumstances, as tax laws can change and individual situations vary.