Australian Money Forum

[TamaraJane]

Hi there! I’m receiving income protection payments due to a disability of about $4500 per month. This is gross amount, so I will need to pay tax at the end of financial year and also super payments. Does anybody know of how I can reduce my taxable income and the most tax effective way of paying super? I have two investment properties, which are negatively geared and am 41.

[TamaraJane]

Anybody??

[Miller]

Hi there! I’m receiving income protection payments due to a disability of about $4500 per month. This is gross amount, so I will need to pay tax at the end of financial year and also super payments. Does anybody know of how I can reduce my taxable income and the most tax effective way of paying super? I have two investment properties, which are negatively geared and am 41.

Hi TamaraJane,

It sounds like a question for a personal tax adviser. I doubt anybody can answer here.

[klublok]

Since you fall under the 90-10 rule for superannuation contributions - you can make personal deductible contributions to super. This means that you can salary sacrifice the fully $4500 to your super and it be all tax deductible.

The only question is whether you can get access to your super now - that depends on the state of your injuries. When you say you are on income protection, was your policy payable under "any occupation" or "own occupation"? If it is "any" occupation, then arguably you would be able to access your superannuation as well. Did you get any TPD insurance in your super? Arguably you can get some of that too ...

Anyway, in terms of tax that depends on the answer to my questions above ...