One of the most important — and most overlooked — questions about a TPD claim is tax. The headline payout figure isn't always what lands in your account.
Why tax can apply
TPD benefits paid from superannuation are generally treated as a super withdrawal, which can attract tax depending on your circumstances.
What affects the amount
- Your age when the benefit is paid.
- Whether it's taken as a lump sum or income stream.
- The tax components of your super.
- Potential concessions (such as the disability element) that can reduce tax.
Get tailored advice
Because the rules are complex and personal, this is an area where professional advice can genuinely increase what you keep. This article is general information only and not tax advice.
First, find out if you have a claim at all with our free eligibility check.