Structured Settlements Definition

In this article when i refer to a structured settlement contribution i will refer to a contribution covered by s 29295. This hidden gem relates to structured settlement contributions.

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Receiving a compensation payment may have implications for a clients existing or future centrelink benefits.

Structured settlement contributions. A structured settlement contribution is a contribution to a complying superannuation fund that arises from the settlement of a personal injury claim where two legally qualified medical practitioners have certified that because of a personal injury it is unlikely the member can ever be gainfully employed in a capacity for which they are reasonably qualified or trained. For the contribution to be excluded as a non concessional contribution the member must make an election using the ato form nat 71162 for the payment to be treated as a structured settlement. A structured settlement is a negotiated financial or insurance arrangement through which a claimant agrees to resolve a personal injury tort claim by receiving part or all of a settlement in the form of periodic payments on an agreed schedule rather than as a lump sumas part of the negotiations a structured settlement may be offered by the defendant or requested by the plaintiff. The components of a structured settlement are outlined in this document. Contribution derived from a structured settlement the personal injury exemption will apply if the contribution arises from the settlement of a claim that satisfies the following conditions. Structured settlements information for injured people. The amount of structured settlement contributions made to the individuals superannuation is disregarded in the calculation of their total superannuation balance. Once a structured settlement has been arranged you cant change it or cash it out for a lump sum. Structured settlements information for lawyers. Less structured settlement contributions 500000. More specially it relates to contributions covered by s 29295 of the income tax assessment act 1997 cth. The social security act 1991 ssa definition of compensation requires the payment to be made wholly or partly in respect of lost earnings or lost. Structured settlements examples. Because structured settlement contributions arise mainly as a result of damages for personal injury these are excluded from the calculations. Form and instructions for superannuation fund members who have received an eligible personal injury payment structured settlement and want to contribute all or part of the amount to super without it counting towards their non concessional contributions cap total superannuation balance and transfer balance cap.

A the claim is for compensation or damages for or in respect of personal injury suffered by the individual and is made by the. 5 notes on ges 15b in ltci reserve contributions ges union fidelity unit also backs structured settlement obligations.