G'Day All

A court action has been brewing over the last year regarding the taxation of invalidity payments by COMPSUPER, especially how they relate to family law and taxation of that benefit.  The judge yesterday handed down a decision stating that the invalidity benifit was not a defined benefit therefore this will have an effect on how it is administered

Here is a synopsis by one of the respondents in the case

"What does this court win mean???
1. Family law......Invalidity benefits are no longer "defined benefit interests"...this means that any property settlement will no longer be skewed expedentially against us....no longer will there be these 1.4 - 1.6 mil valuations.....the judgement means that the pension will be valued at "one fortnights pay" which is all we are entitled to at any given time.
2. ATO......As of yesturday the group certificates recieved by us all are completely void.......We do not recieve a super income stream and the payment is no longer a defined benefit and cannot be taxed that way......meaning that the group cert is completely useless........However.....As of right now we do not meet any of the definitions in the ITAA......The tax office is pretty much going to have a nightmare as to where they fit us in......I think a decision will have to be made in our favor......again though It is imperative that everyone keeps putting the ball in their court not ours......Its not up to us to make the decision its the ATOs decision......so do not allow them to put anything on you......tell them "your the decision maker" I dont have an oppinion etc"

I will post the link as soon as it is published