Non-concessional contributions
Personal injury contributions (structured settlements)
Section: 5.5
5.5 Personal injury contributions
Personal injury contributions are not counted against the non-concessional contributions cap. To qualify as a personal injury contribution the contribution must arise from the settlement of a claim in respect of a personal injury to the member.
Personal injury contributions are also called also known as structured settlements.
| Qualifying personal injury payments | Details | When contribution must be made |
| Structured settlements | Settlements of a claim for compensation or damages for personal injury suffered by the persona and the claim is made by the person or their "legal representative"
The settlement takes the form of a written agreement between the parties to the claim (whether or not a court order is required to make the agreement effective |
Within 90 days of the later of:
|
| Lump sum worker's compensation payment | Settlement of a claim in relation to a personal injury suffered by the person under a low of Commonwealth or of a State or Territory relating to workers compensation | Within 90 days of the receipt of the payment |
| Court order for a personal injury payment | Order is made in respect of a claim that is for compensation or damages for personal injury suffered by the person and the claim is made by the person or their "legal representative".
the claim is based on the commission of a wrong, or on a right created by statute the order is not an order for a structured settlement |
Within 90 days of the later of:
|
Furthermore, the following conditions must be satisfied to qualify as a personal injury contribution:
- two legally qualified medical practitioners must have certified that, because of the personal injury, it is unlikely that the member can ever be gainfully employed in a capacity for which they are reasonably qualified because of education, experience or training, and
- the member or their legal personal representative gives the fund a competed Contributions for personal injury form when (or before) making the contribution. This effectively notifies the fund it is a personal injury contribution. This form can be obtained from the ATO website.
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Last modified: Wednesday, June 28, 2023