From www.smsfadviser.com: Payment of a lump sum disability benefit can reduce the taxable component of an individual’s superannuation, potentially to nil, according to expert David Busoli.

He explains that this occurs when the taxable component converts to a tax-free component during payouts or rollovers.

Making non-concessional contributions prior to these transactions can further increase the tax-free portion of the superannuation.

Filed under: Superannuation

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