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_Boogs(Newbie)Newbie
20 July 2021

I made a TPD claim using a legal firm against my super fund which was successful and also withdrew a small portion of my super with this.In doing so there was a large amount of tax taken from my payout.My questions is - I can't seem to get a PAYG statement from my super fund and the amount taxed isn't showing up in my tax return at the moment when I look at pre preparing it.

Also the cost from my legal firm was quite a lot - I'm assuming this would be a tax deduction to offset the tax I paid for the super pay out,is that correct.

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993 views
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Most helpful replyATO Certified Response

JasonT(Community Support)Community Support
ATO Certified Response21 July 2021

Hi @Boogs,

Super funds need to report amounts released and tax withheld by 14 August. If you're not seeing the PAYG data in pre-fill, you may have to wait until the fund lodges their reports. If your fund is willing to provide you the details then you can manually enter the details and go ahead with lodging.

Generally legal expenses incurred in the pursuit of superannuation and total permanent disability (TPD) insurance payments aren't tax deductible.

How a super lump sum benefit is taxed depends on:

    • if the benefit has a taxed and/or untaxed element

    • the age of the person who received the payment, and

    • the amount.

    We'll work out the applicable tax for super lump sums once you've lodged your return. A tax offset applies where the marginal tax rate is higher than the maximum tax rate for the lump sum payment.

    All replies

    Most helpful replyATO Certified Response

    JasonT(Community Support)Community Support
    ATO Certified Response21 July 2021

    Hi @Boogs,

    Super funds need to report amounts released and tax withheld by 14 August. If you're not seeing the PAYG data in pre-fill, you may have to wait until the fund lodges their reports. If your fund is willing to provide you the details then you can manually enter the details and go ahead with lodging.

    Generally legal expenses incurred in the pursuit of superannuation and total permanent disability (TPD) insurance payments aren't tax deductible.

    How a super lump sum benefit is taxed depends on:

      • if the benefit has a taxed and/or untaxed element

      • the age of the person who received the payment, and

      • the amount.

      We'll work out the applicable tax for super lump sums once you've lodged your return. A tax offset applies where the marginal tax rate is higher than the maximum tax rate for the lump sum payment.

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