Resource
EOFY Insurance Checklist 2026
Coverage limits, tax deductibility & what to review before 30th June
30 June is weeks away. Most business owners will spend hours sorting their tax and barely minutes on their insurance.
Here’s what most people miss: insurance premiums paid before 30 June are generally tax deductible in that financial year. And if your business has grown since you last reviewed your cover, you may also be carrying an underinsurance gap that will cost you far more than any tax saving at claim time.
The checklist below covers both what to pay before 30 June and what to check before another year passes. Download it for free below or read through the full guide.
TL;DR
- 30 June 2026 is the last date to pay and claim insurance premiums as a tax deduction in the 2025–26 financial year.
- General Interest Charge (GIC) on ATO debts is no longer tax deductible from 1 July 2025 making pre-EOFY compliance more costly to ignore.
- EOFY is the best time to review whether your sums insured still reflect your actual business value.
- Underinsurance is Australia’s most common and costliest insurance mistake, most business owners haven’t updated their cover since 2021.
- A pre-EOFY review takes less than an hour and can prevent a six-figure shortfall at claim time.
Is business insurance tax deductible in Australia?
Yes. Insurance premiums paid for policies that protect income-producing activities are generally tax deductible for Australian businesses. This includes:
| Insurance type | Generally deductible? |
|---|---|
| Public Liability | Yes |
| Professional Indemnity | Yes |
| Business Interruption | Yes |
| Workers Compensation | Yes |
| Management Liability | Yes |
| Cyber Insurance | Yes |
| Key Person Life / Income Protection (business-owned) | Depends on structure. Check with your accountant |
| Trauma / TPD (business-owned) | Generally not deductible |
Source: ATO — Insurance premiums you can claim
Important 2025 change: General Interest Charge (GIC) on ATO debts is no longer tax deductible for amounts accruing from 1 July 2025. This increases the real cost of ATO non-compliance, another reason to get your BAS, super, and tax obligations squared away before EOFY. (Source: CleanSlate Accounting, BAS Due Dates 2025–26)
To maximise your deduction, pay your annual premium before 30 June 2026. If you pay monthly, check whether switching to annual billing makes sense for your cash flow and tax position.
How to use the EOFY checklist
The free checklist covers four areas. Here’s what to do with it:
Step 1: Pull your current policy schedule
Find your renewal documents and note the key figures: sums insured, indemnity periods, declared wages, limits of liability. You need these in front of you before you can answer the checklist questions accurately.
Step 2: Work through each section
The checklist is designed to take 20 minutes. Section 2 is the one most businesses find gaps in. Pay close attention to your Business Interruption figures if your revenue has grown.
Step 3: Flag anything that doesn’t look right
If a question flags a gap, or you’re not sure how to answer it, that’s the signal to talk to a broker before 30 June.
Step 4: Pay before 30 June if deductibility matters
If your renewal is in July or August, ask whether you can prepay the annual premium before 30 June. Confirm the tax treatment with your accountant.
The underinsurance problem: why EOFY is the time to fix it
Australia has a significant underinsurance problem. Business values, revenue, wages, stock, and equipment have all increased materially since 2021 but most policies haven’t been updated to match. When you’re underinsured and make a claim, insurers apply the averaging clause. Your payout is reduced in proportion to how underinsured you are.
Example: Your building is insured for $800,000 but its replacement value is $1,200,000. You’re 67% insured. A storm causes $200,000 in damage. You receive $133,000, not $200,000.
Three things changing on 1 July that affect your insurance
Several regulatory changes taking effect 1 July 2026 create new insurance exposures that should be on your radar before you renew:
- Payday Super: Increases payroll frequency and director liability exposure → review Management Liability limits
- AML Tranche 2: Accountants, lawyers, and real estate agents face new PI obligations → check Professional Indemnity covers new duties
- OAIC Privacy sweep: Privacy non-compliance can now result in penalties up to $66,000 → consider Cyber + Privacy Liability cover
Common questions
From business owners at this stage
Is business insurance tax deductible in Australia?
Generally yes, premiums for insurance that protects income-producing activities (Public Liability, Professional Indemnity, Business Interruption, Workers Compensation, Cyber) are tax deductible for Australian businesses. The deduction applies in the year the premium is paid. Always confirm with your accountant for your specific structure.
What is underinsurance and why does it matter at EOFY?
What is the averaging clause in Australian insurance?
How do I know if my Business Interruption cover is adequate?
Does Workers Compensation need to be updated at EOFY?
What changed about the tax deductibility of ATO interest charges?
What new insurance risks should I think about for 2026–27?
Can I claim a tax deduction on insurance paid for personal assets?
How often should I review my insurance?
Make EOFY 2026 the year you close the gap
Most business owners sort their tax before EOFY and barely look at their insurance. The checklist above takes 20 minutes. Pocket makes the review just as simple.
Download the free EOFY insurance checklist. Work through your cover in 20 minutes before 30 June.
Already done the checklist and found gaps? Book a free 15-minute review with Pocket →
EOFY Checklist
Download the free EOFY Insurance Checklist 2026, which covers tax deductibility, sums insured, liability covers, and people and compliance. Takes 20 minutes. Free for Australian business owners.
Public Liability Insurance – a complete guide
Public Liability insurance is one of the most commonly held covers in Australia and one of the most commonly misunderstood. Here’s what it actually covers and what it doesn’t.
What is underinsurance in Australia and how do you avoid it?
Most Australian businesses are underinsured
and they find out at claim time. The averaging clause reduces your payout even on a partial loss if your sums insured are out of date. Here’s how it works in plain English, and what to do before your next renewal.
Payday Super 2026: What Australian employers must do before 1 July
From 1 July 2026, every pay run triggers a super obligation. Miss it and the Super Guarantee Charge applies automatically. Here’s what employers need to do before the deadline — and what Management Liability insurance can and can’t protect you from if things go wrong.
Tax Audit Insurance: What it is, what it covers, and whether you need it
The ATO audits over 500,000 businesses a year — and small businesses are 3x more likely to be selected. Tax Audit Insurance covers your accountant and legal fees when they come knocking. Not the tax itself, just the cost of defending your position. Here’s what it covers, who needs it, and the one rule most people learn too late.
ATO BAS crackdown 2026: What the April 28 deadline means for your business
This article references ATO compliance activity and the regulatory obligations of Australian business owners. It is general in nature. For advice specific to your situation, speak with your accountant or contact Pocket.
Sources: ATO.gov.au, CleanSlate Accounting, Insurance Council of Australia.
This article contains general information about insurance and tax deductibility. Tax treatment depends on your individual circumstances, always consult your accountant for specific advice.