TPD claim how much tax do you pay?

(Newbie)Newbie

8 July 2025

Hello ATO,

I have a recently received a TPD claim of $136,000.00 paid into my superannuation fund account. I need a few questions answered please.

How much tax will I pay if I pull the money out?

Because it’s TPD do I get a tax free portion I don’t pay any tax on?

Also will this amount I take out be added on top of my yearly gross income on my tax return?

I’m under the age of 60, I’m 37 years old. Needing the money after a serious life changing work injuries.

Thank you,

Risey

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BroncosvRabbits

(Devotee)Devotee

10 July 2025

Hello @risey,

Only your superfund will be able to answer this for you.

They know your taxed and un-taxed super contributions and those two separate things can/will determine the total tax withheld.

They also are the ones who ultimately withhold the tax (if any). 🍀

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DamienATO

(Community Support)Community Support

11 July 2025

Hi @risey,

Yes, you may have a tax free portion and a taxable portion. @BroncosvRabbits is correct and you can speak with your super fund about how much of each portion is within the lump sum payment. They can potentially provide you a breakdown of everything, since they calculate it all for you.

You don't need to include the lump sum payment in your "regular income" section as it is taxed differently. If you put it in your regular income section, you may be double taxed.

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TPD claim how much tax do you pay?

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