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Personal Injury & Compensation
Personal Injury & Compensation

Make the most of an unfortunate situation with expert financial advice

Compensation payments are often a once-off occurrence, so getting the right advice can make a significant difference to your financial position going forward.
  Book a Meeting with Kurt Purkiss   Book a Meeting with Sheree King

For instance, there’s a special exemption that may allow you to contribute all (or part) of your payment into your superannuation where you can commence a tax free, fully accessible income stream without the risk of breaking the rules.

Ensuring you are eligible to take advantage of these rules before you act is paramount. The details in these rules can make a big difference and if not fully understood the resulting outcomes may place you in a worse position.

Take Advantage

In order to take advantage of this exemption your payment needs to meet at least one of the following criteria:

  • The payment is for the settlement of a claim for compensation or damages for personal injury.
  • The payment is for the settlement of a claim for personal injury suffered in relation to workers compensation.
  • The payment is made following a court order for compensation or damages for personal injury.

It’s also important to note that if your payment combines personal injury compensation with other compensation, for medical expenses or property damage for instance, only the amount relating to personal injury is exempt from the super contribution cap.
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Timing is crucial

You need to make the contribution within 90 days of whichever of the following events occurs last:

  • Receipt of the payment (when you or your legal representative receives it).
  • An agreement for the settlement of a personal injury payment is reached.
  • A court order for a personal injury payment is handed down.

You also need to advise your super fund you are claiming the exemption before or at the time of the contribution.
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Tax free access?

If you can make a Personal Injury Payment into superannuation, you might also qualify to release your super based upon Total and Permanent Disability rules.

This may then permit you to commence a retirement phase pension which has tax-free earnings.

If established correctly it can also provide you with a tax-free income and access to lump sum withdrawals.
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  Read Article: Personal Injury Settlements

Personal Injury & Compensation

CONTACT US

To discuss your options, contact us below or by phone or email for a complimentary meeting with Kurt Purkiss. We can normally meet within a week.

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Contact Us

Please feel free to reach out to us at any time. Call or contact us on the details below to get in touch or book a complimentary consultation.
NEWCASTLE

Level 1, 56 Hudson Street
Hamilton NSW 2303

Newcastle Office (02) 4969 6600
info@lambourne.com.au

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SINGLETON

3/6 Castlereagh Street
Singleton NSW 2330

Singleton Office (02) 5542 8165
info@lambourne.com.au

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EAST GOSFORD

Suite A & B, 78 York Street
East Gosford NSW 2250

East Gosford Office (02) 02 4092 4111
info@lambourne.com.au

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