To the Honourable Members of Parliament,

I am a resident of New South Wales, and I write to you with deep concern regarding an urgent matter that affects not only my family but many Australians who are facing serious illness and undergoing major medical treatments or surgeries.

I am scheduled to undergo a life-saving transplant surgery and will be on income protection for approximately 12 months. During this period, my income will be reduced by 25%, and my family will be heavily reliant on income protection payments to manage our daily expenses.

However, these payments—despite being reduced and essential for survival—are still subject to income tax. This places an unfair and unnecessary financial burden on individuals and families who are already enduring immense emotional, physical, and financial stress. With Sydney’s high and rising cost of living, and a heavy monthly mortgage, we are struggling to maintain financial stability while also focusing on health and recovery.

I respectfully urge the Australian Government to urgently consider a policy change that would:

1.  Make income protection payments tax-exempt for seriously ill individuals during extended medical leave; or
Introduce a targeted tax exemption or rebate for individuals with long-term illnesses who are on reduced income and face substantial living expenses.
2. It is deeply concerning that private income protection insurance—designed specifically to provide financial security during health crises—is currently taxed as regular income. These payments are neither discretionary nor additional income; they are carefully planned safety nets that Australians rely on in times of serious medical need.

No Australian should be forced to choose between their health and financial survival. In times of serious illness, our systems must offer support—not impose penalties.

We urge Parliament to review and address this issue promptly, in the name of compassion, fairness, and human dignity.

Thank you for your attention and support.