Increase your 2018 tax refund - Get a tax deduction for your personal super contributions

New Rules for 2018.

From 1 July 2017, most people can make a personal superannuation contribution for which they claim a tax deduction. This could provide an immediate positive return on their investment.


You will be able to contribute any amount, provided that your total concessional contributions are not more than $25,000 in a particular.

year (NOTE: The compulsory 9.5% superannuation guarantee contributions that your employer must make IS included within this $25,000).


Prior to 2017, the only way to make additional deductible contributions was to organise a salary sacrifice with your employer, which was likely a bit of a hassle. Now, you are able to make contributions directly to your super fund – Your employer doesn’t even have to know!


Your personal contributions will be taxed at 15% when they arrive into the superannuation fund. Provided your personal marginal tax rate is more than 15%, then the amount that you save in tax will be more than the amount that the super fund pays in tax.


If you have a self-managed superannuation fund, you can still make personal contributions.


So you want to claim a tax deduction for personal super contributions? Well, here is the specific requirements:

You must have made the contributions to a complying super fund or a retirement savings account that is not:

a Commonwealth public sector superannuation scheme in which you have a defined benefit interest

a CPF or other untaxed fund that would not include your contribution in its assessable income

a super fund that notified the ATO before the start of the income year that they elected to either treat all member contributions to

the super fund as non-deductible, or

the defined benefit interest within the fund as non-deductible.

You must meet the age restrictions. For those ages between 65 and 74, you must take a ‘work test’ in order to be eligible to clain the deduction. Learn more about the work test requirements here.

You must notify your fund in writing of the amount you intend to claim as a deduction within the required timeframe

Your fund must acknowledge your notice of intent to claim a deduction in writing.

From the ATO – Changes to personal super contributions deductions website.

Thinking about making an extra contribution but not sure if it makes sense for your situation? Come and talk to us or give us a call on 4743 4966.

Ready to chat?

Whether it be a quick phone call, meet for coffee, or want to bash it all out in an email – Contact us today! No charge, no obligation.

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