Did you know that you could boost your super AND lower your tax by adding your own contributions to your super fund?
If you make a personal super contribution, you may be able to claim the contribution as a tax deduction and reduce your tax assessable income.
Personal super contributions are the amounts you contribute to your super fund from your after-tax income (that is, from your take-home pay).
What deductions can’t I claim for personal super contributions?
You can’t claim a deduction for superannuation contributions paid by your employer directly to your super fund from your before-tax income such as:
- the compulsory super guarantee
- reportable employer super contributions shown on your annual payment summary
- extra amounts above any compulsory super contributions your employer makes on your behalf
- super contributions made through a salary-sacrifice arrangement
When can I claim for personal super contributions?
To be able to claim a deduction for personal super contributions you need to get your income from:
- salary and wages
- a personal business (for example, people who are self-employed contractors, or freelancers)
- investments (including interest, dividends, rent and capital gains)
- government pensions or allowances
- partnership or trust distributions
Other things to consider
When deciding whether to claim a deduction for super contributions, you should consider the super impacts that may arise from this, including whether:
- you will exceed your contribution caps
- you wish to split your contributions with your spouse
- it will affect your super co-contribution eligibility.
Feel free to contact us to find out more about personal super contributions and how you can maximise the benefits.