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Personal Super Contributions

Personal super contributions made from 1 July 2017 onwards are tax deductible for both employees and sole traders.  

For sole traders, up to $25,000 can be contributed to superannuation and claimed as a tax deduction for the 2018 financial year.

Employees are also able to contribute additional amounts to super from their take home pay.  For example, if your employer contributes $15,000 to your superfund during the year, you can contribute an additional $10,000 on top of this amount and receive a tax deduction.

Claiming the Deduction

These contributions are a great way to increase your super balance while enjoying some tax savings, provided you lodge the correct documentation with your super fund.

In order to claim a deduction for these contributions, you must complete and lodge a notice of intent with your Super Fund.  For the 2018 financial year, this notice needs to be received and acknowledged by your super fund by the earlier of:

  • The day you lodge your 2018 tax return
  • 30 June 2019

Your superfund will generally notify you of the amount that you are able to claim as a deduction.  A copy of the notice to claim the deduction form can then be obtained from either the ATO website or directly from your Super Fund.  This form should also be provided to your accountant so as to ensure that the deduction is properly claimed. It should be noted that once this form is received by your super fund, these contributions will be taxed in your super fund at a rate of 15%.

What happens if I don’t notify my Superfund?

If you contribute to super without notifying your superfund that you intend to claim a tax deduction (i.e.: not completing the relevant steps explained above) the following will occur:

  • No tax deduction is available for the contributions
  • The contribution is not taxed in the Super Fund

If you have any additional questions regarding super contributions or require any assistance in completing the notice of intent to claim a deduction form, please contact our office.

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