Eligible Service Date: Either the date you started your superannuation account, or if you rollover one super account into another, they will take the earlier start date. Beware of consolidating super funds!
Date Last Worked: the date you stopped being eligible of being gainfully employed. Usually this is your employment termination date, rather than the date you became sick or disabled.
- The future service period becomes the new tax-free component.
- Tax withheld by the superfund will be 22% of the past service period portion of withdrawal.
Our statistics show that in over 30% of cases the superannuation fund has incorrectly calculated the tax rate, usually withholding additional tax. If nothing else it is a good idea to get your calculation checked.
Do you want to know more about tax on TPD payouts?
Contact TPD Claims advice today to find out more about tax on TPD payouts.