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  • Are you eligible to claim a deduction?

    You are eligible to claim a deduction for personal super contributions if:

    • contributions made prior to 1 July 2017 were made to a complying super fund or a retirement savings account (we'll refer to both as 'your fund')
    • for contributions made on or after 1 July 2017, you made the contributions to your fund that was not a            
      • Commonwealth public sector superannuation scheme in which you have a defined benefit interest
      • Constitutionally protected fund (CPF) or other untaxed fund that would not include your contribution in its assessable income
      • super fund that notified us before the start of the income year that they elected to either treat all member contributions to the            
        • super fund as non-deductible
        • defined benefit interest within the fund as non-deductible
         
       
    • contributions made prior to 1 July 2017 your earnings as an employee were less than the maximum allowed
    • you meet the age restrictions
    • you have notified your fund of the amount you intend to claim as a deduction by obtaining the Notice of intent to claim or vary a deduction for personal contributions form (NAT 71121)
    • your fund has acknowledged your notice of intent to claim a deduction.

    Earning income as an employee

    For contributions made prior to 1 July 2017 you cannot claim a deduction if, during the income year, you obtained 10% or more of the total of the following as an employee:

    • your assessable income
    • your reportable fringe benefits
    • your total reportable employer superannuation contributions.

    This is the case regardless of whether your employer has paid super on your behalf.

    From 1 July 2017 the requirement that you derive less than 10% of your income from employment sources has been abolished and regardless of your employment arrangement you may be able to claim a tax deduction. Those aged 65 to 74 will still need to meet the work test in order to be eligible to make a contribution and claim a tax deduction.

    Example 1

    Hannah is employed as a sales manager and, during 2017–18, earns $45,000 in salary and wages.

    Hannah made personal (after-tax) super contributions of $3,000, notified her fund in writing that she intended to claim this amount as a deduction, and received an acknowledgment of that notice.

    Hannah meets all the other eligibility criteria and can claim a deduction for her personal super contributions of $3,000 in her 2017–18 tax return.

    Example 2

    During 2016–17, Marcelle makes a contribution of $100,000 to the CPF. Marcelle intended to claim a deduction for her contribution, notified her fund in writing that she intended to claim this amount as a deduction, and received an acknowledgment of that notice. She meets all the other eligibility criteria and can claim a deduction for her personal super contributions in her 2016–17 tax return.

    Marcelle’s concessional contributions in 2016–17 are nil as the contribution made to the CPF is not included in her concessional contributions.

    During 2017–18, Marcelle chooses not to make any personal contributions to the CPF, as she is no longer entitled to claim a deduction for her personal super contributions made to a CPF.

    End of example

    See also:

    Age restrictions

    If you are aged 75 years or older, you can only claim a deduction for contributions you made before the 28th day of the month following the month in which you turned 75.

    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 also earned income as an employee or a business operator during the year.

    Work test

    There are age-related conditions under which your super fund can accept your contributions. If you are under 65 years old when you make a contribution, you don't need to satisfy the work test in order for your fund to accept the contribution from you. Once you turn 65, you must satisfy the work test in order for your super fund to accept a contribution for which you can claim a deduction.

    If you are 65–74 years old at the end of the income year in which you made the contribution, you need to satisfy a work test in each financial year that you make a contribution in order for your fund to accept the contribution for which you can claim a deduction. To satisfy the work test, you must work at least 40 hours during a consecutive 30-day period each financial year in order for your fund to accept a personal super contribution for which you can claim a deduction.

    Example 3

    Kumiko is 67 years old. During 2017–18 she works 20 hours per week for six months as a data analyst, and earns $26,000 in salary and wages.

    As Kumiko is over 65 years old, she must satisfy the work test for 2017–18 to be eligible to claim a deduction for her personal (after-tax) super contributions.

    Kumiko satisfies the work test because she was gainfully employed for at least 40 hours during a consecutive 30 day period in 2017–18.

    Kumiko notified her fund in writing that she intended to claim $2,000 as a deduction, and received an acknowledgement of that notice. She meets all the other eligibility criteria and can claim a deduction for her personal super contributions of $2,000 in her 2017–18 tax return.

    End of example

    See also:

    What you can’t claim

    You cannot claim deductions for:

    • a rolled-over super benefit
    • a benefit transferred from a foreign super fund
    • a directed termination payment paid into a super plan by an employer under transitional arrangements that applied until 30 June 2012
    • contributions paid by your employer from your before-tax income (including the compulsory super guarantee and salary sacrifice amounts)
    • voluntary super contributions released to you under the First Home Super Saver (FHSS) Scheme
    • FHSS amounts that you have recontributed to your super fund(s)
    • contributions to              
      • a Commonwealth public sector superannuation scheme in which you have a defined benefit interest
      • a super fund that would not include the contribution in their assessable income, such as an untaxed fund or a constitutionally protected fund (CPF)
      • other superannuation funds or contributions specified in the regulations.
       
      Last modified: 23 Jul 2018QC 20139