The benefits of personal super contributions

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.