What the formula does
For an eligible disability superannuation benefit, the law can increase the tax-free component using a formula based on the benefit amount, service period and days to the relevant retirement date.
TPD superannuation tax component estimator.
Estimate how the disability lump-sum modification formula can change the tax-free and taxable components of an eligible superannuation disability benefit. The result does not calculate the tax you will pay.
Educational component estimate
Use dates and component information rather than calculating service days yourself.
The calculator works out an age-65 last retirement date by default and derives the day counts behind the section 307-145 formula.
Result
Your estimated components will appear here.
The result will show the calculated service period, age-based retirement date, days to retirement, estimated additional tax-free component and remaining taxable component.
What it does not decide
The calculator does not decide whether the benefit qualifies as a disability superannuation benefit, whether a condition of release is met or what withholding and final tax apply.
What to gather
Fund benefit quote, tax component information, service-period information, incapacity date, retirement date used by the fund and any relevant claim or payment statements.
Published TPD case example
Why the tax component can matter before a withdrawal decision.
AMGENT has published a Melbourne case example involving a $450,000 TPD benefit where a rollover and disability-component strategy increased the tax-free component before withdrawal. The published case reports a tax reduction of more than $15,000.
Benefit and components
The starting point was the TPD benefit, existing tax-free component, service history and the period remaining to the relevant last retirement day.
Strategy before withdrawal
The case considered the order of rollover and withdrawal rather than treating the insurance payout as an isolated cash decision.
Individual advice still required
Eligibility, fund rules, service-period dates, tax treatment and the appropriate withdrawal approach depend on the individual circumstances.
Case-study disclaimer
This is a summary of a previously published AMGENT case example, not a forecast or promise. Past outcomes are not guaranteed. The calculator on this page estimates tax components only and does not reproduce or recommend the strategy used in the case.
TPD FAQs
Questions to clarify before acting on a payout.
Use these answers as preparation for advice, then confirm the figures and fund rules that apply to the actual claim.
Section 307-145 uses service days in the service period for the lump sum. The dates let the calculator derive a working day count rather than asking you to calculate days manually. Your fund may hold a different statutory service period, especially after transfers or fund mergers, so the final figure must be confirmed.
The tax law definition of “last retirement day” is generally age 65 where employment or office would not otherwise have ended at a particular earlier or later age. If a different compulsory retirement age applies, the input can be changed and should be verified.
No. It estimates the disability modification to the tax-free and taxable components only. Withholding, final tax, fund treatment and withdrawal strategy require separate review.
Start with TPD Claims Advice & Support, then review the wider business and personal insurance and superannuation & SMSF context where relevant.
Bring the fund benefit quote, tax component information, earliest service or membership date available, claim/payment statements and any current superannuation or insurance documents.
Use the estimate as a starting point, not the decision.
AMGENT can review the result alongside cash needs, debt, superannuation, investment planning and estate implications.
Important information
This estimator is general educational information only. The calculation is based on user-entered information and the disability lump-sum modification formula in section 307-145 of the Income Tax Assessment Act 1997. It does not calculate tax payable, confirm eligibility, replace a fund calculation or provide personal financial, tax, legal or medical advice.
Want the payout considered as part of the wider plan?
A TPD review can look at the tax component information together with cash needs, debt, superannuation choices, investment planning and estate implications.