Personal contributions – deductions

If a member is eligible, they can claim an income tax deduction for super contributions they make for their own benefit. A member who intends to claim a deduction must notify you of this intent.

The member must give you the notice by the earlier of:

  • the time they lodge their personal income tax return for the financial year during which the contribution was made
  • the end of the financial year following the year the contribution was made.

The notice is invalid if:

  • the person is no longer a member of your SMSF
  • you no longer hold the contribution because of a partial rollover that included the contribution
  • you have paid a lump sum or have started to pay a super income stream that includes the contribution.

In these circumstances, the member will not be able to claim a deduction for the personal contribution made.

Acknowledging valid notices

You must acknowledge your member's valid notice. Your acknowledgment should include:

  • the date your fund received the notice
  • any subsequent variations that your fund received
  • member account and fund details
  • the total amount of personal contributions that the notice covers    
    • the amount the member has notified you they intend to claim as a deduction
    • the dates the contributions were made or the financial year they were made in.

This ensures that your members are able to claim the deductions they're entitled to and that super co-contributions and excess contributions tax are correctly applied.

You don't have to acknowledge the notice if the value of the relevant super interest on the day you received the notice is less than the tax that would be payable by you for the contribution.

Deadline for varying notices

If the member claiming the deduction has made an error with their notice of intent to claim a deduction, the notice can be varied (including varied to nil). Generally they need to do this by the same deadline as the original notice. After this, the notice can't be varied unless:

  • a deduction for the contributions is not allowable (that is, the member was ineligible to claim a deduction)
  • the variation reduces the amount shown on the original notice by the amount that is not allowable as a deduction.

See also:

Last modified: 30 Jun 2016QC 42470