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Personal Injury & TPD Financial Advice Benefits In Australia

Updated: Dec 3, 2024

A table showing the benefits of financial advice for TPD and personal injury claims

If you have suffered a personal injury and/or an illness that creates a Total and Permanent Disability (TPD) claim, it is essential that you reach out to receive Financial Advice.


Typically, the greater the size of the personal injury settlement and/or TPD claim, the greater the benefits of Financial Advice because of:


  • Different tax minimisation strategies (often by creating superannuation pension accounts and making contributions).

  • The ability to maximise the amount of Centrelink Disability Support Pension (subject to meeting the income and asset test thresholds, preclusion periods and disability definitions).

  • An adviser can create a Financial Plan which aims to maximise after-tax benefits of utilising these proceeds. For example, in some cases it may be best to:

    • Pay off your mortgage, or

    • Create a pension income stream, or

    • Leave some funds in superannuation accumulation phase or

    • A combination of all three


The table listed above shows the benefits of structuring a TAC and TPD claim effectively versus either doing nothing once the proceeds are received, or withdrawing all the fund proceeds into a bank account and paying off the mortgage.


By structuring wealth effectively, it is estimated that we can provide enormous value to the clients situation:

  • $74,250 worth of tax saved


  • $26,000 p.a. of extra income each year


  • $41,000 p.a. of extra total investment returns


If you have just suffered a TPD claim and/or personal injury settlement, you can book in for an obligation free initial call:





General Advice only. The calculations above are based on the following:


  • Client Aged 45

  • TPD Payout of $900,000

  • TAC Payout $400,000

  • Mortgage of $300,000

  • Superannuation of $100,000

  • Cash $20,000

  • Partner to remain as Carer / home duties

  • Note a preclusion period could occur for a period before these full benefits are realised however the outcome is still preferrable versus withdrawing all funds which would also stop the partners payment


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