How to claim your tax deduction for personal super contributions before 30th June 2019
TIPS: How to claim your tax deduction for super contributions before 30th June 2019
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 2019 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 2020 for contributions made in 2018/19).
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 2018/19