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TPD payout into superannuation

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Newbie

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Hello,

I'm 59 YO & about to receive a TPD payout. The policy was owned within my employer super fund.

 

I presume I'm allowed to have the benefit paid into my super account, rather than having it paid directly to me, which will probably leave me with a tax bill.

 

Assuming I can leave the benefit in my super account, does the amount count towards the non-concessional cap, or can I still contribute the $300,000 non-concessional amount (I havent used any of this cap as yet)

Thank you

 

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Devotee Registered Tax Practitioner

Replies 3

To some extent, it will depend on the rules of the particular fund.

 

Firstly, look at this   https://www.lawyersalliance.com.au/opinion/how-to-protect-your-clients-tpd-money

then talk to your fund manager.

 

 

4 REPLIES 4

Most helpful response

Devotee Registered Tax Practitioner

Replies 3

To some extent, it will depend on the rules of the particular fund.

 

Firstly, look at this   https://www.lawyersalliance.com.au/opinion/how-to-protect-your-clients-tpd-money

then talk to your fund manager.

 

 

Newbie

Replies 2

Thank you Bruce, 

 

I have looked at the link & will check with the fund manager.

 

However, regarding whether a TPD payment that remains in super counts towards the non-concessional contribution cap, that would be an ATO issue would it not? I don't know the answer to that question,

 

Regards

Devotee Registered Tax Practitioner

Replies 1

 

However, regarding whether a TPD payment that remains in super counts towards the non-concessional contribution cap, that would be an ATO issue would it not?

 

An insurance benefit payment to a fund is not a contribution.

 

Newbie

Replies 0

Thank you Bruce, much appreciated