Using this field
This field is used for reporting personal contributions that a member validly elects to exclude from counting toward their non-concessional cap, where the contributions have arisen from a structured settlement or order for personal injuries.
If you received a valid personal injury election with the contributions, report them at this field. You are obliged to check the validity of this election, but only to the extent it is possible and reasonable to do so.
The following are examples of questions about the validity of the election that we expect you to ask to determine its validity:
- Was the election received by you before or on the date on which the contribution was made?
- Was the election given in respect of contributions made by the member, or under the member's direction, as opposed to being made by another person (such as an employer)?
- Was the election made in the approved form?
- Do you hold the member's TFN?
A debit will arise in the member's transfer balance account for any structured settlement amounts received and contributed towards their super interest.
To be eligible, the contributions must arise from either:
- a structured settlement payment
- an order for a personal injury payment
- a lump sum workers compensation payment.
The eligibility only applies to the particular amounts that are compensation or damages for personal injury.
The member must have made the contribution within 90 days of the later of:
- the date the member received the personal injury payment
- the date the member entered into an agreement for settlement of a personal injury
- the date on which an order for a personal injury payment was made.
The period may be longer than 90 days if the Commissioner allows.
For contributions made from 1 July 2007, you must receive a completed Contributions for personal injury election (NAT 71162) form from the member on or before the date on which the member made the contribution.
You are not required to investigate these matters when you receive an election. However, if you become aware that these eligibility requirements have not been met then you should treat the member's election as invalid and advise them that the amount will be reported to the ATO at the Personal contributions field.
Whether a person is eligible to make this election is a complex matter on which you will not be able to advise your members. You should urge your members to seek professional advice before making contributions subject to this election.
You should not change your reporting at this field even if a member later provides you with a notice of intention to claim a deduction for these amounts. The law allows a member to elect to deduct a personal injury/structured settlement contribution in the same way as they deduct other personal contributions That is, you do not adjust the personal contributions reported when you receive a notice of intent to claim a deduction when the amount has been reported at the personal contributions field – nor should you do so when it has been reported at the personal injury/structured settlement field.
Election issues
Late elections
If members seek to lodge late elections, you should refer them to us for advice since this is not a matter in which you have any discretion.
Elections not in respect of personal contributions
The personal injury election is to exclude personal contributions from the non-concessional contributions cap. It does not apply to any other type of contribution.
Elections in the approved form
This election must be made using the Contributions for personal injury (NAT 71162) form. This form is the only approved form. It must be completed in full and signed by the member or the member's legal representative either before or at the time of the contribution.
No TFN
A personal contribution made with a personal injury election is a member contribution for the purposes of the contributions standards. It cannot be accepted if a valid TFN is not:
- on the election form or
- already held by you.