There are many deductions for the taxpayer to claim in his/her Tax return during the financial year 2018. One of them is tax deduction for personal super contributions.

You may be able to claim a tax deduction for personal super contributions that you made to your super fund from your after-tax income, for example, from your bank account directly to your super fund.

You cannot claim a deduction for superannuation (super) contributions paid by your employer directly to your super fund from your before-tax income such as:

  • the compulsory super guarantee
  • salary sacrifice amounts
  • reportable employer super contributions shown on your annual payment summary.

Before you can claim a deduction for your personal super contributions, you must have given your super fund a Notice of intent to claim and received an acknowledgement from your fund.

Taxpayers eligible to claim a deduction for personal contributions include workers who get their income from:

  • salary and wages
  • a personal business
  • investments (including interest, dividends, rent and capital gains)
  • government pensions or allowances
  • superannuation
  • partnership or trust distributions
  • a foreign source.

Earning income as an employee

For contributions made prior to 1 July 2017 you cannot claim a deduction if, during the income year, you obtained 10% or more of the total of the following as an employee:

  • your assessable income
  • your reportable fringe benefits
  • your total reportable employer superannuation contributions.

From 1 July 2017 the requirement that you derive less than 10% of your income from employment sources has been abolished and regardless of your employment arrangement you may be able to claim a tax deduction. Those aged 65 to 74 will still need to meet the work test in order to be eligible to make a contribution and claim a tax deduction.

Age restrictions

If you are aged 75 years or older, you can only claim a deduction for contributions you made before the 28th day of the month following the month in which you turned 75.

If you are under 18 years old at the end of the income year in which you made the contribution, you can only claim a deduction for your personal super contributions if you also earned income as an employee or a business operator during the year.

Work test

There are age-related conditions under which your super fund can accept your contributions. If you are under 65 years old when you make a contribution, you don’t need to satisfy the work test in order for your fund to accept the contribution from you. Once you turn 65, you must satisfy the work test in order for your super fund to accept a contribution for which you can claim a deduction.

If you are 65–74 years old at the end of the income year in which you made the contribution, you need to satisfy a work test in each financial year that you make a contribution in order for your fund to accept the contribution for which you can claim a deduction. To satisfy the work test, you must work at least 40 hours during a consecutive 30-day period each financial year in order for your fund to accept a personal super contribution for which you can claim a deduction.

Need Help?

If you require assistance with claiming a super deduction please contact one of our Tax Accountants on 1300 QUINNS (1300 784 667) or on +61 2 9223 9166 to arrange an appointment..  Alternatively, please click here to submit an online enquiry form.

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