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  • Working out your deduction

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention
    1. Have you provided, in an approved form, a valid notice of intent to claim a deduction for personal superannuation contributions to your fund or RSA provider?

      Yes – Go to step 2.

    No – Send this notice to your fund or RSA provider before you lodge your tax return. You are not entitled to claim a deduction for personal superannuation contributions unless you have given the notice and received an acknowledgment from your fund or RSA provider.
    You can download a notice of intent to claim or vary a deduction for personal super contributions form, or contact your super fund as they may have their own you can use.

    1. Have you received an acknowledgment from your fund or RSA provider that you gave them a valid notice of intent to claim a deduction for personal superannuation contributions?

      Yes – Go to step 3.

    No – Until you receive an acknowledgement from your fund, you are not entitled to a deduction for personal super contributions. You may either wait to lodge your tax return until you receive the acknowledgment, or you may lodge now (without claiming the deduction) and request an amendment once your acknowledgment has been received. If your fund has rejected your notice or advised that it is not valid, you are not entitled to claim a deduction.

    1. Were you 18 years old or older on 30 June 2018?

      Yes – Go to step 5.

    No – Go to step 4.

    1. Did you receive income from carrying on a business or from activities that resulted in you being treated as an employee for superannuation guarantee purposes?

      Yes – Go to step 7.

    No – You are not entitled to a deduction for personal superannuation contributions.

    1. Did you turn 75 years old before 1 June 2017?

      Yes – You are not entitled to a deduction for personal superannuation contributions for 2017–18.

    No – Go to step 6.

    1. Did you turn 75 years old between 1 June 2017 and 31 May 2018 inclusive?

      Yes – Add up all the contributions you made between 1 July 2017 and the 28th day of the month following the month in which you turned 75 years old (inclusive) which you are eligible to claim as a tax deduction. This is the amount you can claim. Go to step 7.

    No – Go to step 7.

    1. Add up all your 2017–18 contributions which you are eligible to claim as a tax deduction.

    Important information

    Remember, your fund or RSA provider must have given you an acknowledgment of your valid notice which advised them of the amount you are claiming as a deduction.

    You cannot claim an amount that is higher than the amount your superannuation fund or RSA providers acknowledged.

    You may vary your valid notice to reduce the amount stated in relation to your contribution (including to nil). You cannot vary your valid notice to increase the amount stated in relation to your contribution.

    You must notify your super fund or RSA provider of any variation, in the approved form, on or before the day you lodge your 2018 tax return or 30 June 2019, whichever is earlier. Once you have provided notification, the value you enter at Amount for that contribution is limited to the reduced amount.

    You may vary your notice after that date if the amount stated does not meet the personal superannuation contributions conditions and we have disallowed an amount of your deduction, for example, if the deduction you claimed exceeds your assessable income.

    You can only vary your notice after that date by the amount of the deduction that does not meet the conditions and that we disallowed.

    See also:

    You need to know

    Personal super contributions are amounts you have paid to an eligible complying super fund or RSA to provide superannuation benefits for yourself, or for your dependants in the event of your death.

    Most super funds are eligible complying super funds. If you are unsure contact your super fund.

    The deduction you claim can only reduce your taxable income to nil. It cannot add to or create a loss.

    The deduction you claim may also be used in the income tests for eligibility for certain tax offsets and government benefits. See Income tests.

    If you are 65 years old or older, you can only make personal contributions if you meet certain conditions. You should check with your super fund or RSA provider.

    If you are under 18 years old at the end of the income year in which you made the contribution, you can only claim a deduction for your personal super contributions if you earned income from:

    • activities or circumstances which treat you as an employee for superannuation guarantee purposes, such as, salary or wages or other remuneration in return for your personal labour or skills
    • carrying on a business.

    See also:

    Complete this section only if your super fund or RSA provider has given you an acknowledgment of your valid notice which advised them of the amount you intend to claim as a deduction.

    Superannuation contributions splitting

    Complying super funds and RSA providers may allow you to split your super contributions with your spouse. However, personal super contributions for which you don't claim an income tax deduction cannot be split to your spouse's super account.

    If you intend to lodge a notice of intent to claim a deduction for personal super contributions with your fund, you must do it before you lodge your super contributions splitting application for those contributions.

    A super contributions splitting application can only be made to your fund or RSA provider:

    • during the income year that follows the end of the income year in which you made the contributions, or
    • during the same income year you made the contributions if your entire benefit is to be rolled over, transferred or cashed before the end of that year.

    Your spouse includes another person (of any sex) who:

    • you were in a relationship with that was registered under a prescribed state or territory law
    • although not legally married to you, lived with you on a genuine domestic basis in a relationship as a couple.

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    Superannuation contribution caps and government super contributions

    The amount of your personal super contributions that is allowed as an income tax deduction will count towards your concessional contributions cap. Other amounts that count towards your concessional contributions cap include:

    • your employer contributions
    • any amount you salary sacrificed into super (these are known as Reportable employer superannuation contributions and appear on your payment summary and are shown in the Income tests section on your tax return).

    For 2017–18, the concessional contributions cap is $25,000 for everyone. Previously, this cap was $30,000 or $35,000 depending on your age. If the sum of the contributions you claim as a deduction plus your employer contributions plus any salary sacrificed contributions is more than $25,000, you may have to pay extra tax.

    The amount of your personal contributions that is not allowed as an income tax deduction will count towards your non-concessional contributions cap. For 2017–18, the annual non-concessional contributions cap is $100,000 ($180,000 for 2016–17) if your total superannuation balance on 30 June 2017 was less than $1.6 million. If you exceed your non-concessional contributions cap you may have to pay more tax.

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    You may be entitled to receive a government super co-contribution based on the personal contributions you made for which you did not or could not claim a tax deduction. The co-contribution is a matching government super contribution for low income earners who make a personal super contribution.

    You may be entitled to receive a Low Income Super Tax Offset (LISTO) based on your concessional contributions, including your personal super contributions for which a tax deduction was allowed. The LISTO is a government super contribution (up to a maximum of $500) for low income earners that is designed to offset the tax paid by super funds on concessional contributions.

    Check that you have provided your tax file number to your superannuation fund to ensure you can make a personal contribution and ensure you receive your co-contribution entitlement.

    See also:

      Last modified: 09 Oct 2018QC 55661