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LyndaBoys(Newbie)Newbie
21 Apr 2026

I am currently taking legal action against an employer who denied my eligibility to super, in 2 separate ways.

  1. Information was withheld from me, which advised how I could apply to be recognised as eligible to contribute to Super, even though I was part time.
  2. I was advised that I could not roll super contributions from a fund into my employer fund. It became obvious that this information was incorrect.

I am taking legal action on both issues to be paid the Superannuation that I was denied.

I am applying for an ex-gratia payment, compensation and superannuation arrears.

My questions are these:

  1. I have now retired from the work force.
  2. Do I pay tax on this payment amount, IF and when it is made to me.
  3. IF tax is payable, is there any part of the superannuation payment which is NOT taxed?
  4. IF it is taxed, what type of tax is it?
  5. How can I avoid liability for any tax?

Thank you very much for your time in preparing me to understand a future event.


Lynda

69 views
1 replies
69 views
1 replies

Most helpful response

Most helpful reply

NikkiATO(Community Moderator)Community Moderator
22 Apr 2026

Hi @LindaBoys,


The tax treatment depends on what each part of the payment represents. There isn’t one tax outcome that applies to everything, or a way to 'avoid tax'.


If the payment represents super that should have been paid earlier, it should be paid into a super fund, not to you personally. When paid into super, tax is dealt with within the fund, not as personal income to you. Your retirement doesn’t change this.


Compensation or ex‑gratia amounts are taxed based on what they’re replacing:

Any amounts paid directly to you (rather than into super) may be assessable income, depending on their nature.


Because settlements can include multiple components with different tax treatments, it’s a good idea to speak with a registered tax professional to confirm the structure before payment is finalised.

All replies

Most helpful reply

NikkiATO(Community Moderator)Community Moderator
22 Apr 2026

Hi @LindaBoys,


The tax treatment depends on what each part of the payment represents. There isn’t one tax outcome that applies to everything, or a way to 'avoid tax'.


If the payment represents super that should have been paid earlier, it should be paid into a super fund, not to you personally. When paid into super, tax is dealt with within the fund, not as personal income to you. Your retirement doesn’t change this.


Compensation or ex‑gratia amounts are taxed based on what they’re replacing:

Any amounts paid directly to you (rather than into super) may be assessable income, depending on their nature.


Because settlements can include multiple components with different tax treatments, it’s a good idea to speak with a registered tax professional to confirm the structure before payment is finalised.

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