How to claim your tax deduction for personal super contributions before 30th June 2018
TIPS: How to claim your tax deduction for super contributions before 30th June 2018
The new super rules ( as of 1 July 2017) mean that anyone under 65* years can claim a tax deduction for their personal contributions to super.
The maximum (tax) deductible contribution you can make is $25,000 per year .
And the $25,000 limit also includes:
- Any super put in by your employer ( currently 9.5% SGC) and,
- Any salary sacrifice amounts you contribute.
However, time is running out!
Here’s what you need to do:
1. Get your funds together and see how much you are able to contribute by 30th June
- Remember that you cnn only contribute up to the $ 25,000 annual limit;
- Check the amount of super your employer has /will contribute to your super by the end of the financial year, and
- Check any salary sacrifice amount you may have already put into your super
2. Make your personal contribution well before the 30th June 2018 deadine
- Make any contribution as soon as possible.
- June is a very busy time for super funds, and the date of your contribution is actually the date your fund has received/processed any contribution.
- (And this year, 30th June 30th is a Saturday!)
3. Contact your super fund or look on their website to find out how they do it:
- There will be a form for you to complete ie Notice of intent to claim a tax deduction for personal contributions.
4. Let the tax office (ATO) know that you want to claim a deduction by:
- Completing the ATO form (elect to make a deduction for personal super contribution), or
- Checking with your super fund as they may have an election form, or
- You can write to your fund and let them know you want to make the claim.
TIP : Timing is important, if you want to claim the deduction
The election should be by the earlier of:
- when you lodge your tax return with ATO, or
- The end of the next financial year (ie 30 June 2019 for contributions made in 2017/18).
Your super fund will let you they have received the election form.
And then you are able to claim the deduction!
Other things to be aware of:
What happens if you claim too much ( ie you go over the $25,000 limit)?
o You may have to pay an excess contributions tax ( tax at your personal rate + penalty)
- If you are considering starting a pension from your super, the fund must have your election before you start a pension with this amount. Otherwise you won’t be eligible for any tax deduction.
What will you do with any deduction?
TIP : Paying off your non tax-deductible debt first will help you get debt-free faster!
Call us for a quick chat or drop us a line for help with paying down loans and getting your income more tax effective.
For more ideas, check out the Viva blog on
* If you’re aged between 65 and 75 you’ll need to meet the work test before you can make a personal contribution for 2017/18.