Personal Super Contributions

6th July 2018 |

From 1 July 2017, the government has removed the 10% / substantially self-employed test.

This means that individuals can make concessional (deductible) contributions personally and claim as a tax deduction.

Why is this beneficial?

• Contributions into Superannuation will be taxed at the rate of 15% in your superannuation fund.

• Claiming a tax deduction will reduce your taxable income therefore tax payable and the tax saving will depend on your marginal rate of tax.

What’s the catch?

• Payment made to the superannuation fund must be received and acknowledged by the fund by 30th June 2018.

• You will be required to fill in a Notice of intent to claim form and send this to your superannuation fund. Your fund will then issue an acknowledgement receipt which you will then use to substantiate your claim for deduction on your individual tax return.

• You 2018 total superannuation contribution is capped at $25k and this amount also includes the 9.5% super guarantee contributions made by your employer(s). Make sure you check your contribution balance for this financial year before making any additional personal super contributions.

• Taxpayers with Adjusted Taxable Incomes of more than $250k will need to pay an extra 15% tax on top of the normal 15% contributions tax.