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  • Personal super contributions deduction

    Previously, an individual (primarily self-employed) could claim a deduction for personal super contributions where they meet certain conditions. One of these conditions is that less than 10% of their income is from salary and wages.

    Effective 1 July 2017, this condition was removed for the 2017-18 and future financial years. The remaining conditions remain the same.

    The intent of this change is to improve the flexibility of the super system so that more Australians can utilise their concessional contributions cap.

    See also:

    Summary impacts for APRA-regulated funds

    • You may receive more notices of intent and may need to issue more acknowledgements.
    • You may receive more enquiries about this topic because it now affects more people.
    • You may see an increase in your reporting of personal super contribution deductions because this deduction will be available to more of your members.
    • You may see an increase in your funds' assessable income due to more eligible contributions.
    • As members of untaxed and certain defined benefit super funds, known as non-deductible funds, won't be eligible to claim a deduction for contributions made to these funds, you may receive an increase in questions from members confirming that your fund is not a non-deductible, untaxed or ineligible fund for PSCD purposes. If they're a member of a non-deductible super fund and wish to claim a deduction, they can choose to make a personal super contribution to another eligible super fund.
    Last modified: 25 Sep 2017QC 51308