You might pay up to around 22% on the taxable portion, but a “tax-free uplift” can reduce this significantly. In many cases the effective tax rate is much lower, and if you’re over 60, your benefit is usually tax-free. Your super fund works this out for each account separately.

The tax-free uplift increases the tax-free component of your super when you receive a TPD benefit. It’s calculated using your date of birth, when you joined the fund and when you last worked. Generally, the more years you would have worked to age 65, the larger the uplift and the less tax you pay. That’s why this calculator asks about your service period.

Yes. A TPD condition of release usually means your super becomes fully accessible. You can take it as a lump sum, start an income stream (pension), or leave some in super. The right choice depends on your tax position, Centrelink, and how much income you need, so it’s worth getting advice before moving everything in one hit.

There’s no one “best” option. Taking a lump sum gives you full control and access now. Taking regular withdrawals can smooth out cash flow and tax over time. Moving into an allocated pension can keep your money invested in a tax-effective environment and may give you tax-free income or lump sums once you reach age 60. This calculator compares these options using your own numbers so you can see the trade-offs clearly.

TPD payouts can range from tens of thousands to several hundred thousand dollars, depending on your cover level and how many super funds you have. Even “average” payouts are big enough that tax and strategy decisions can make a real difference to how long the money lasts.

Getting advice is strongly recommended. A TPD payout might be a once‑in‑a‑lifetime payment that has to support you for many years. The wrong call on tax, Centrelink or investment risk can cost you thousands. At AMGENT Wealth Management in Melbourne, we help clients map out a clear plan for their TPD and super so they know exactly where their money is going and why.