Tax deductions for personal superannuation contributions

In the 2016-17 Budget, the Government announced that from 1 July 2017 all individuals under age 75 will be able to claim an income tax deduction for personal superannuation contributions.

These amounts will then count towards an individual's concessional contributions cap and be subject to 15 per cent contributions tax in the fund.

Currently only individuals who derive less than 10 per cent of their income from employment sources can claim this tax deduction.

To access the tax deduction, individuals will lodge a notice of their intention to claim the deduction with their superannuation provider. Generally this notice will need to be lodged before they lodge their income tax return. Individuals can choose how much of their personal superannuation contribution to claim a deduction for.

Certain untaxed and defined benefit superannuation funds will be prescribed, meaning members will not be eligible to claim a deduction for contributions to these funds. If a member of a prescribed fund wishes to claim a deduction, they may choose to make a personal contribution to another superannuation fund.

On 15 September 2016, the Government announced that it will retain the work test for individuals aged 65 to 74.

Legislation and supporting material

  • Legislation is currently being developed for this measure.

Find out more

    Last modified: 15 Sep 2016QC 48864