Personal Injury & TPD Financial Advice Benefits In Australia

General Advice only: It is recommended you reach out to receive tailored personal advice.

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 as quickly as possible.

For example, you may be able to make unlimited superannuation contributions within 90 days of receiving a personal injury or workers compensation claim. However, after this 90 day limit you will be restricted to the yearly concessional and non-concessional contribution cap limits.

If you meet the eligibility for creating a tax free account based pension, having a greater portion of money in this superannuation pension account could save considerable amounts of tax whilst also allowing you to draw on the account to meet your income needs.

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:

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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