Superannuation & Personal Injury · HFI Guidance
Eligible personal injury compensation can sometimes be contributed to superannuation without counting toward the usual non-concessional contribution cap. The rules are strict, and the timing, medical certification and fund notification requirements all need to be addressed carefully.
By Health & Finance Integrated · Updated 7 September 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 key difference is that a contribution covered by section 292-95 is not counted as a non-concessional contribution. This means the usual annual and bring-forward non-concessional contribution caps do not apply to the amount that qualifies under the personal injury rules. Whether an amount qualifies depends on the statutory requirements, the nature of the claim and settlement or court order, the medical certification, the timing and the required notification to the super fund.
The contribution generally needs to be made within the statutory 90-day period, although the Commissioner of Taxation can allow a longer period. The concession does not apply automatically, so the requirements should be reviewed early and the sequence of steps coordinated before the contribution is made.
The deadline
The contribution must generally be made within 90 days after the later of receiving the payment and the relevant settlement agreement or court-order date. The Commissioner can allow a longer period in some circumstances.
The date the personal injury payment is received is one of the dates used to work out the 90-day period. It must be compared with the applicable settlement or court-order date.
For a qualifying written settlement, the agreement date is relevant. The 90-day period is measured from the later of that date and the date the payment is received, subject to special rules where court approval is required.
For a qualifying court order, the order date is relevant. Where a settlement agreement only becomes effective through court approval or a consent order, the legislation also contains specific timing rules for that order.
Section 292-95 allows the Commissioner of Taxation to permit a longer period. This is not something to rely on, but if 90 days may already have passed, obtain advice before assuming the contribution can no longer qualify.
The 90-day period does not simply start on “settlement day”. It is worked out under the statutory timing rule described above. However, the written settlement or court order, medical certificates and super fund notification requirements all need to be coordinated before the contribution is made. In practice, early planning is much safer than waiting until the payment arrives.
The document requirements
The legal character of the claim and the settlement or court order are central to eligibility. Financial advice can identify the superannuation issue, while the client’s lawyer should settle the legal wording and structure of the agreement.
For a written settlement, section 292-95 requires a claim for compensation or damages for, or in respect of, personal injury, made by the injured person or their legal personal representative, and a written agreement between the parties. Workers compensation claims have a separate pathway within the same section.
If the claim is both for personal injury compensation or damages and for another remedy, the legislation applies only to the personal injury part and only to amounts identified in the settlement agreement or order as being solely in payment of that personal injury compensation or damages. This is why mixed claims need careful legal drafting and review before the agreement is finalised.
The certification requirement
In addition to satisfying the settlement or court-order requirements and the timing rule, two medical practitioners must provide the required certification and the super fund must receive the approved notification no later than the time the contribution is made.
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 certification and approved fund notification need to be completed in the sequence required by the legislation, and the contribution needs to be made within the applicable period. Plan these steps early and confirm the fund’s current process before money is transferred.
The tax exemption
Current Division 296 law contains a specific exception for people in respect of whom a structured settlement contribution has been made in that income year or an earlier income year. This can be significant for people with substantial superannuation balances.
Division 296 is now law and applies from the 2026-27 income year. For 2026-27, the large superannuation balance threshold is $3 million and the very large superannuation balance threshold is $10 million. The tax is generally 15% of taxable superannuation earnings, with an additional 10% applying to the very large balance earnings component where relevant.
Section 296-25 provides that a person is not liable for Division 296 tax for an income year if a structured settlement contribution is made in respect of them in that income year or in an earlier income year. That is stronger and more precise than describing the treatment as an “expected” exception.
The exception can matter even where a person’s super balance is below the current threshold when the contribution is made, because balances and thresholds can change over time. Its practical value should be considered as part of the person’s broader superannuation and tax position.
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
Not every payment connected with an injury qualifies. The contribution must arise from one of the pathways in section 292-95 and all of the timing, medical certification and fund-notification requirements must also be satisfied.
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, it is worth reviewing the position as early as possible because the statutory contribution period is generally only 90 days.
Identifying the superannuation implications before the deed is signed and working with the client’s lawyer where the settlement structure or allocation may affect eligibility.
Tracking the applicable statutory period, coordinating medical certification and the approved fund notification, and helping ensure the contribution process is completed in the correct sequence.
Advising on how the contribution fits within the person’s superannuation strategy, including access and pension rules, the Division 296 structured settlement exception and Centrelink 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 settlement structure, medical certification, statutory timing and fund notification all need to line up. HFI works with clients and their legal advisers before and after settlement to help coordinate the financial planning steps.
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.