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Im about to receive my superannuation early (age 40) along with the tpd insurance payout. Will the taxable component affect centrelink payments ie. Ccr, ccb and ifso should i put some aside for the next tax period to cover overpayment for this financial year so far?
Responses
Hi Alan,
I'm going to preface this with that I don't know exactly without doing a fair bit of research.
I believe FTB and childcare etc are assessed on adjusted taxable income.
From the centrelink website https://www.humanservices.gov.au/individuals/enablers/adjusted-taxable-income it says that this includes superannuation income streams and lump sums.
Not only that, there could be quite a lot of tax payable on the withdrawal being made.
So, depending on exactly how much there is being withdrawn, and the tax components of your superannuation fund, there could be significant tax and centrelink issues for you.
I would definitely suggest you seek advice before just withdrawing all your super. There could be much better outcomes for you if you take a lessor amount as a withdrawal, and possibly an ongoing income stream.
Cheers
Glenn
Hi Alan,
I second Glenn’s comments above. Please don’t rush out and cash in your super.
With some careful planning there are some potentially much more favourable tax & Centrelink outcomes that can be achieved.
Regards
James
Hi Alan,
Sure. As Glenn said you’ll find the payment from super will impact the Centrelink benefits you mention - so don’t rush out and cash in the whole thing if you can afford not to.
I suggest you reach out to Glenn, myself or an adviser at your super fund to get some specific advice here. Some very favourable outcomes can be achieved, you may not have to cash in the whole benefit & if you meet the TPD definition you can leave money in super but still have access to it in the future.
Regards
James
Hi Alan,
I’m not qualified to give an answer but I do have a friend who is 46 in this situation. He has had his Super Fund set up a “disability pension” which means no lump sum has been drawn and he will receive regular payments until age 65.
As James and the others have said, get advice before you move any of the money.
Cheers
Scott
Thanks James, although i should mention that I am on a TPI pension through veterans affairs, which is considerably morw generous than any centrelink payments and not income or asset tested- and is awarded for life. My main aim is to have a large deposit for house, new car and some for savings or possible work on new house. My only concern is the effects on CCR, CCB and carers payments my wife receives.
Hi Alan,
Sure. As Glenn said you’ll find the payment from super will impact the Centrelink benefits you mention - so don’t rush out and cash in the whole thing if you can afford not to.
I suggest you reach out to Glenn, myself or an adviser at your super fund to get some specific advice here. Some very favourable outcomes can be achieved, you may not have to cash in the whole benefit & if you meet the TPD definition you can leave money in super but still have access to it in the future.
Regards
James