The old rules were that to claim a deduction on personal super contributions you had to either be self-employed or fulfil a different test, called the 10% test. This test meant that only if less than 10% of your yearly income came from employment were you eligible for a tax deduction on you super contributions.
However, these requirements were scrapped in 2017, and now almost everyone can claim a deduction on their tax, although there are restrictions if you are contributing to specific types of super funds. These include, according to the Australian Tax Office:
- constitutionally protected funds or other untaxed funds that would not include your contribution in its assessable income
- Commonwealth public sector superannuation schemes in which you have a defined benefit interest
- super funds that notified the ATO before the start of the income year that they elected to treat all member contributions to the
- super fund as non-deductible
- defined benefit interest within the fund as non-deductible
How do I claim a deduction?
To claim a tax deduction on personal super contributions, you need to provide a notice of intent to your super fund and receive an acknowledgement in writing. This should done be on or before the earlier of:
- the day you lodge your tax return for the year in which the contributions were made, or
- the end of the following financial year
You can notify your fund by:
- completing a: Notice of intent to claim or vary a deduction for personal super contributions form
- using the form provided by your fund
- writing to your fund and letting them know your intentions
Once you have received acknowledgment from your fund, you can claim your deduction through your tax return. Be aware though, that once you claim a deduction, your contribution will be taxed at up to 15% within the super fund, and you can’t receive co-contributions for it.