Cover business overheads

Business Overheads Cover is specifically designed for self-employed people who need to ensure that if they are unable to work because of sickness or injury, the eligible fixed operating expenses of their business can still be paid.

The benefit reimburses you for the lesser of the monthly benefit amount and the covered business expenses actually incurred in that month. The business expenses covered can include:

• Principal and interest payments under a mortgage
• Principal and interest repayments under a loan for the purpose of the business
• Business insurance premiums
• Rent
• Reasonable book value of the depreciation of plant and equipment
• Rates
• Leasing costs of equipment or motor vehicles
• Accountancy fees
• Utility charges

Please note that some business expenses are not included under the cover.

The cover can be taken out on a stand-alone basis (except for occupations classed as high risk). Alternatively, it can be combined with an Income Care policy or an Income Care Plus policy, both of which provide income protection.

If Business Overheads Cover is taken as part of such a package, a 10 per cent discount applies to the premium each year.

Tax deductibility
The premium for a Business Overheads Cover policy will generally be an allowable deduction from your assessable income under Section 8-1 of the Income Tax Assessment Act 1997.

• Important information about advice
  As this advice including the statements on taxation which are based on the continuance of present taxation laws, rulings and their interpretation has been prepared without considering your objectives, financial situation or needs, you should, before acting on the advice, consider its appropriateness to your circumstances.
  
  Taxation information is for general information only and is current as at 9 October 2003. As individual circumstances differ, you should seek assistance from your taxation adviser.
  
  Business Overheads Cover is components of the Personal Insurance Portfolio, issued by The Colonial Mutual Life Assurance Society Limited ABN 12 004 021 809 (CMLA). CMLA is a wholly owned subsidiary of the Commonwealth Bank of Australia. The Commonwealth Bank of Australia does not guarantee the obligations or performance of CMLA or the products it offers.
  
  View a Product Disclosure Statement (PDS) for Personal Insurance Portfolio (PDF 704kb)  and consider it before making any decision about this product.