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Worried you’re missing part of your refund? Remember, the low and middle income tax offset isn’t a refund on its own – it’s used to offset (or reduce) the amount of tax you pay. The offset amount you may be entitled to is automatically applied and could range between $255-$1080, depending on things like your taxable income and how much tax you’ve paid.
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ATO Community

Lump sum tpd payout is tax paid refundable

Initiate

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ATO Community Support

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Hiya @Daver,

 

Before I can give you any information about this, we need a little more information. Is this a tpd pay out through your super fund, through a workers compensation scheme or through third party insurance?

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Most helpful response

ATO Community Support

Replies 1

Hiya @Daver,

 

Before I can give you any information about this, we need a little more information. Is this a tpd pay out through your super fund, through a workers compensation scheme or through third party insurance?

Initiate

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My TPD is through my Super fund, thanks Steph

ATO Community Support

Replies 1

Hi @Daver

 

Tax is still payable on taxable components of a TPD payment.

 

To work out how a TPD super payment will be taxed, you need to know how much of the money in the super account is a:

  • tax-free component
  • taxable component (taxed element)
  • taxable component (untaxed element).

 

If you get a lump sum, your disability benefit will be taxed at the rates described in How tax applies to your super. If, when you lodge your tax return at the end of the year, this means you've paid too much tax, any excess will be credited back to you. 

Initiate

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Thank you Blake this information is very helpful, this tax return I may have to get an accountant to help. Once again thank you