In some circumstances, superannuation contributions can be claimed on your tax return if made to a super fund or retirement savings account. However, these circumstances are limited and may require professional advice to maximise the benefits.
Superannuation contributions paid by your employers directly to your super fund from your before-income tax cannot be claimed. These contributions include:
However, your superannuation contributions to your super fund from your after-tax income can be claimed. The personal super contributions you claim as a deduction will count towards your concessional contributions cap.
Super contributions that can be claimed as deductions may include
Specific contributions cannot be claimed as tax deductions. These include:
When deciding whether to claim a deduction for super contributions, you should consider the super impacts that may arise from this, including whether:
If you exceed your cap, you must pay extra tax, and any excess concessional contributions will count towards your non-concessional contributions cap.
Your super fund must be notified before claiming the tax deduction against your personal super contributions. You must give a notice of intent to claim or vary a deduction to your fund by the earlier of either the:
Your fund must send you a written acknowledgment telling you they have received a valid notice from you. You must receive the acknowledgment from your fund before you claim the deduction on your tax return.
Maximising your superannuation’s potential could start with boosting your savings with contributions. However, seeking professional advice or guidance before commencing is advisable, as failure to lodge a notice of intent to claim or vary can become an issue.
Why not start a conversation with us to see how we can assist?