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JenP(Initiate)Initiate
20 July 2021

Hi

My partner has just received a TPD lump sum payment which is outside of superannuation. Paid directly to his bank account.

How are TPD lump sum payouts treated for taxation purposes. Is it tax free or is there a formula they use. He has been hit a large amount of tax.

Australian born, never worked outside of Australia and Australian insurance company so no overseas impact at all.

2,279 views
6 replies
2,279 views
6 replies

Most helpful response

Most helpful reply

AriATO(Community Support)Community Support
28 July 2021

Hi @JenP

This is a Super TPD if the premiums were paid from super. The lump sum is taxed as a Super benefit.

Take a look at our response on another thread about how the taxes work for Super benefits. It also contains the links to the info on our website.

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Chantelle ATO(Community Support)Community Support
21 July 2021

Hi @JenP

We've answered a similar question on a previous thread - have a look and see if it answers your question (especially take note of the last 2 responses).

If it doesn't answer your question, please let me know.

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Tax on TPD payout outside of superannuation | ATO Community