Announcements
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.
Still not sure? Ask the Community

ATO Community

Will i get a tax refund from my TPD payout?

Newbie

Views 112

Replies 4

Hi guys, 

I've had a TPD payout and I was wondering if I will get a refund at tax time.   I haven't had a job so no other taxable income has been received. I have had centrelink payments which do not have tax.

I only need a yes or no answer   Smiley Happy

Thank you so much 

1 ACCEPTED SOLUTION

Accepted Solutions

Most helpful response

ATO Community Support

Replies 0

Hi @Crystalmand,

 

We have added some more information below for you but the easiest thing would be to check with your super fund directly on how the payment is going to be taxed or seeking help through a registered tax agent.

 

Unfortunately we aren't able to provide a 'Yes/No' response to this as superannuation payouts (such as TPD) can be complex to work out. Various factors come into play, including whether you're at or below preservation age, how the TPD is being paid (as a lump sum or through an income stream).

 

I'd recommend you take a look at our webpages Invalidity or disability payments from employers or super funds and How tax applies to your super for some further information. So it's not as straight forward to provide an answer.

 

 

 

All the best,

 

RachATO

4 REPLIES 4

ATO Community Support

Replies 2

Hi @Crystalmand

 

It's a little more complicated than a yes or no answer as a number of factors can play into this. We've got a previous thread on the topic where our response links to another two thread that should help you out. It's a bit of a read but they should give you a good explanation of how tax works with these payments and how a possible refund is calculated. 

 

Hope this helps. 

Newbie

Replies 1

Thank you.  Unfortunately I have multiple sclerosis and to be honest.... concentrating is extremely hard.  Smiley Sad

I've received my TPD payout and I no longer work.   I'll be submitting the group certificate in a few weeks and I'm really scared that I may need to pay  Smiley Sad

ATO Community Support

Replies 0

Hi @Crystalmand,

 

Once you lodge your return we will look at tax already withheld and apply tax offsets you're entitled to. As an Australian resident your first $18200 taxable income is tax free, thereafter we apply marginal tax rates. Bear in mind your TPD will be looked at according to the taxable components and the relevant tax rates for super lump sum. Your super fund may already have withheld the correct tax.

 

As @RachATO advised, you can speak to your super fund or a tax agent if you are concerned about tax liabilities. 

 

All the best.  

Most helpful response

ATO Community Support

Replies 0

Hi @Crystalmand,

 

We have added some more information below for you but the easiest thing would be to check with your super fund directly on how the payment is going to be taxed or seeking help through a registered tax agent.

 

Unfortunately we aren't able to provide a 'Yes/No' response to this as superannuation payouts (such as TPD) can be complex to work out. Various factors come into play, including whether you're at or below preservation age, how the TPD is being paid (as a lump sum or through an income stream).

 

I'd recommend you take a look at our webpages Invalidity or disability payments from employers or super funds and How tax applies to your super for some further information. So it's not as straight forward to provide an answer.

 

 

 

All the best,

 

RachATO