Superannuation & Personal Injury · HFI Guidance
A personal injury super contribution allows eligible compensation recipients to contribute personal injury payments to superannuation outside the normal non-concessional contribution caps. The timing and documentation rules are strict, and the window, once closed, is very difficult to reopen.
By Health & Finance Integrated · Updated 2 June 2026 · General information only
Understanding the basics
A structured settlement contribution is a personal injury super contribution made directly from a personal injury compensation payment. It is governed by section 292-95 of the Income Tax Assessment Act 1997, and it works differently from any other type of super contribution.
The most significant difference is that a personal injury super contribution sits completely outside the normal non-concessional contribution caps. A $1 million compensation payment, or $2 million, or more, can be contributed to super in full with no cap applied. The amount that qualifies is determined by the settlement itself, not by superannuation law.
Miss the 90-day window and the standard pathway may be lost, unless the Commissioner of Taxation allows a longer period. It does not apply automatically, and it is often missed unless the client has advice from someone familiar with personal injury, superannuation and settlement timing.
The deadline
The contribution must be received by your super fund within 90 days. The clock starts from whichever of the following occurs latest.
In most cases the clock starts running from when the compensation payment is received. This is the most common trigger for the 90-day window.
Where a settlement agreement is entered into, the 90-day period runs from the date of that agreement if it is later than the date of payment.
Where a court order is made, the period runs from the date of the order if that is the latest of the three events.
Where payment is made through an intermediary such as a Public Trustee, the clock starts when the Trustee receives the funds, not when they reach the claimant. Verify this rule applies to your specific circumstances before acting.
The 90-day window starts at settlement. But the steps required to qualify, including the settlement wording, the medical certificates, and the pre-notification to the super fund, all need to be in place before the contribution is made. In practice, this means the planning needs to start well before settlement day.
The document requirements
This is where many claimants miss out, and it is entirely preventable. The settlement wording is a financial planning issue, not just a legal one.
The settlement agreement or court order must specifically identify the payment, or the relevant portion of it, as compensation for personal injury. If the document does not use that language, the contribution will not qualify.
Where a settlement covers both personal injury and other losses, such as economic loss or property damage, only the amount specifically allocated to personal injury is eligible. Where there is no breakdown at all, none of the payment qualifies.
The certification requirement
Two steps must be completed before the contribution is made. Missing either one means the contribution will not qualify.
Two legally qualified medical practitioners must certify that, because of the personal injury, it is unlikely the person will ever be gainfully employed in a capacity for which they are reasonably qualified by education, experience, or training. Both certificates must be in place before the contribution is made.
The superannuation fund must be notified using the ATO-approved Contributions for personal injury form, currently NAT 71162, no later than the time the contribution is made. If the notification step is missed, the contribution will not qualify, regardless of whether the other requirements are met. Always confirm the current form and process with your adviser before proceeding.
The medical certificates, the pre-notification to the fund, and the contribution itself all need to happen in the correct sequence and within the 90-day window. This is not something to leave to the last moment. Plan the steps before settlement is finalised.
The tax exemption
Under the Division 296 rules, people who have received qualifying structured settlement contributions are expected to be excluded from Division 296 liability. This can be significant where a personal injury contribution causes, or later contributes to, a super balance above the $3 million threshold.
Division 296 is now law, received royal assent on 13 March 2026, and takes effect from 1 July 2026. It imposes an additional 15% tax on superannuation earnings attributable to balances above $3 million.
Under the Division 296 provisions, people who have received qualifying structured settlement contributions are expected to be excluded from Division 296 liability. This exception applies regardless of when the structured settlement contribution was made, and also applies to contributions made in the future.
For most personal injury claimants, the current super balance may be well under $3 million. But a structured settlement contribution can itself be substantial, and balances grow over time. A claimant who contributes a significant compensation payment into super at age 40 or 45 may well exceed the $3 million threshold by the time they reach their 60s. The exception removes that risk.
The structured settlement contribution rules apply to personal injury compensation payments. TPD insurance benefits paid from superannuation are governed by a separate set of rules, including the disability super benefit and the TPD tax-free uplift. Both issues often arise in the same client situation, which is why they need to be considered as a connected set of decisions. Learn more about HFI’s Post-TPD Advice service.
Eligibility
The personal injury super contribution rules are available to anyone who receives a lump sum payment as compensation for personal injury.
Working with HFI
The personal injury super contribution is one part of a broader set of financial decisions that follow a personal injury settlement. These decisions interact and getting the contribution right while missing the Centrelink or super structure implications creates a different kind of problem downstream.
HFI works with people navigating this period. If a settlement is approaching, or has recently been received, the right time to review the position is now. The 90-day clock does not wait.
Reviewing the proposed wording before the deed is signed to confirm a personal injury component is correctly identified and allocated.
Tracking the window, coordinating the medical certification and fund pre-notification steps, and ensuring the contribution is made in time.
Advising on how to hold the contribution inside super, including pension phase eligibility, the Division 296 exemption, and Centrelink assets test implications.
The compensation payment also affects Centrelink entitlements, the preclusion period, tax, and estate planning. HFI reviews the complete picture, not just the super contribution in isolation.
Working alongside your legal team to ensure the settlement structure, deed wording, and Centrelink notification are all coordinated before signing.
Where both a TPD claim and a personal injury settlement are in play, both sets of rules need to be understood as a connected set of decisions. HFI advises on both.
Frequently asked questions
The medical certificates, the settlement wording, and the fund pre-notification all need to be in place before the contribution is made. HFI works with clients at the pre-settlement stage to make sure nothing is missed.
Key references
General information only. This content does not constitute financial, legal or tax advice. Individual outcomes depend on personal circumstances, the terms of your settlement, superannuation fund rules, and current legislation. All legislative references and thresholds must be verified against current ATO, DSS and Services Australia guidance before acting. Contribution cap figures, Division 296 exemption rules, and approved form references should be confirmed with a qualified adviser before any decisions are made.
Health & Finance Integrated is a Corporate Authorised Representative of Able Financial Services (ABN 27 646 319 164) AFSL 530596. Shop 6, 23 Hassall St, Parramatta NSW 2150. Any advice in this website is general in nature and has been prepared without considering your objectives, financial situation or needs.