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  • CRT Alert 042/2017

    30 May 2017

    Super changes – elect to be non-deductible by 1 July 2017

    Superannuation funds with a defined benefit interest have until 1 July 2017 to elect to be non-deductible funds or make member contributions non-deductible for the 2017–18 income year.

    From 1 July 2017, eligibility rules for claiming a tax deduction for personal super contributions will change. Part of these rule changes allows super funds with a defined benefit interest to treat member contributions as non-deductible by making an election in the approved form.

    This means their members will not be eligible to claim a tax deduction for personal super contributions made to the fund or made to the defined benefit interest within the fund.

    This change enables these funds to avoid undue costs as a result of members making tax-deductable personal contributions to the fund.

    What you need to do

    If you have a defined benefit interest and want to elect to

    • be a non-deductible fund or
    • treat member contributions made to the defined benefit interest within the fund as non-deductible,

    you must notify the Commissioner before the start of the income year in which the contributions are received.

    For example, if you want contributions received from the 2017–18 income year to be non-deductible, you must notify the Commissioner of your election before 1 July 2017.

    Read about how to notify the Commissioner of your election to be non-deductible.

    Super funds that are already non-deductible

    The following types of funds are already prescribed by law to be non-deductible and do not need to make this election:

    • Commonwealth public sector superannuation schemes that have a defined benefit interest
    • Constitutionally protected funds or other untaxed funds that would not include member contributions in their assessable income.
      Last modified: 30 May 2017QC 52331