In 2019 suffered a personal injury in my workplace. I took my claim to the South Australian Employment Court and the Judge made an order in my favor, recognizing my injury was my employers fault. The Order stated that I should receive payments from my employer as a result and referenced the Return to Work Act 2014.
The Act states my employer must provide payments either until I recover or for two years and then can set up a scheme to continue financial support if my doctors still provide reports stating I am unable to work.
The scheme offered payments for two years and a Total and Permanent Disablement Lump Sum if my doctors provide reports to show my injury was too severe for me to return to paid work. The scheme also offered to provide all my superannuation paid out early additionally as a part of my Total and Permanent Disablement payout.
I applied for and received the Total and Permanent Disablement Lump Sum and used the amount to pay off my mortgage and secure my home. I then needed to apply for a Disability Support Pension which is now my only source of income as I am still suffering my injury.
I have been reading information on the ATO website that indicates I should not have to pay tax on these payments, including on this site:
Mcfanboy from Taxicorn replied ( https://community.ato.gov.au/s/question/a0J9s0000001B4r/p00018888 )
"However, if your claim relates to any wrong or personal injury suffered in your occupation and you agree to a settlement, or a court order, the compensation will be tax free, whether paid as a lump sum or on a periodic basis.
With regards to Super it depends if they have returned to work ofr not"
Is this correct that I should not pay tax on these payments and Super as I have not been able to return to working?
Thank you.
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