• Personal injury payments

    Section 292-95External Link provides an exclusion from the non-concessional contributions cap for certain super contributions made from personal injury payments.

    To qualify for the exclusion a tax deduction for the contribution must not be claimed and four basic conditions must be satisfied:

    • eligible forms of injury payment
    • timing of the contribution
    • medical certification
    • notification to the super plan.

    To be covered under section 292-95, the contribution must arise either from:

    • settlement of a claim if all of the following conditions are met:
      • the claim is for compensation or damages for personal injury suffered by the person and is made by them or their legal personal representative
      • the claim is based on the commission of a wrong or on a right created by statute
      • the settlement takes the form of a written agreement between the parties to the claim (whether or not that agreement is approved by an order of a court or is embodied in a consent order made by a court).
       
    • settlement of a claim for a personal injury suffered by a person under an Australian law or a State or Territory law relating to workers' compensation
    • an order of a court when all of the following conditions are satisfied:
      • the order is made for a claim for compensation or damages for personal injury suffered by a person and the claim is made by them or their legal personal representative
      • the claim is based on the commission of a wrong or on a right created by statute
      • the order is not an order approving or endorsing an agreement as mentioned in the third condition in the first dot point above.
       

    If a claim is for both personal injury and for some other remedy (that is, damage to property) the exclusion only applies to the extent that it relates to injury suffered by the person. This amount must be clearly identified in the agreement or court order as solely relating to compensation or damages.

    A failure to separate the amounts means that the entire payment will fail to qualify for the exclusion. This requirement does not apply to claims under Australian workers' compensation law.

      Last modified: 22 Nov 2013QC 34181