Taxation of Insurance Proceeds and Lost/Destroyed Assets

Recent bushfires are an example of natural disasters that result in the destruction and loss of assets, and associated insurance claims. The tax implications of losses and insurance recoveries will need to be understood by impacted taxpayers.
Trading stock, livestock, machinery and buildings are examples of assets destroyed in recent natural disasters. The tax implications from the losses differ depending on the asset category, and there are also differing tax implications from insurance recoveries.

For the taxation of insurance proceeds, it is important to understand replacement asset relief, CGT roll-over relief and concessions for lost trading stock.

We will look at practical examples to understand these implications and concessions.

Learning Outcomes:

• Understand the CGT and balancing adjustment event implications of destroyed assets
• Understand the tax treatment of insurance proceeds
• Understand the roll-over relief provisions relevant to destroyed assets

Suited to:

• Advisors with clients impacted by recent fires (and floods)
• Taxpayers in primary production industries
• Suitable for introductory and intermediate level

You will also be provided with: 

• The PowerPoint Presentation Slide deck
• A Searchable Transcript
• Any Supporting Documentation