• Personal super deductions

    If you are allowed a personal super deduction in your income tax return, the amount allowed will be counted towards your concessional contributions cap rather than your non-concessional contributions cap.

    Example 1

    Julia contributed $100,000 as a personal contribution. She claims and is allowed a personal super deduction of $100,000 in her income tax return. If Julia has no other contributions for the year, her concessional contributions will be $100,000 and her non-concessional contributions will be $0.

    Example 2

    Candy is 50 years old. She is self-employed and eligible to claim a personal super deduction against her assessable income in her income tax return. She contributes $550,000 to her fund on 25 June as a personal contribution. At the same time, she gives a notice to her fund that she intends to claim $100,000 of her personal contributions as a personal super deduction. The fund acknowledges this notice, and Candy lodges her income tax return claiming this amount.

    Candy's fund will report $550,000 as her personal contributions for the financial year. Even though Candy advised the fund that she intends to claim a personal super deduction for part of her personal contributions, the fund must still report them as personal contributions.

    If Candy is allowed the full amount of her personal super deduction claim

    When we determine Candy's concessional and non-concessional contributions, we will count $100,000 towards her concessional contributions cap and the remaining $450,000 towards her non-concessional contributions cap.

    If Candy is not allowed the full amount of her personal super deduction claim

    If Candy is not allowed the full amount of her personal super deduction claim, only the amount she was allowed as a deduction will be counted towards her concessional contributions cap. For example, if Candy was only allowed a personal super deduction of $80,000, only $80,000 will be counted towards her concessional contributions cap. The remaining $470,000 of her personal contributions will be counted towards her non-concessional contributions cap.

    End of example

    See also:

      Last modified: 10 Oct 2016QC 21756