Steps to claiming a tax deduction for a super contribution
Steps to claiming a tax deduction for a super contribution.
You may be eligible to claim a tax deduction if you make a personal contribution to superannuation. There are some important steps and specific timeframes that you need to follow.
What are personal deductible contributions?
A personal deductible contribution (PDC) is a voluntary contribution that you make into your super for which you can claim a tax deduction. These contributions are made with personal savings. PDCs are generally subject to contributions tax of 15%.
Caps apply which limit the total amount you’re able to contribute to super without additional tax payable. Personal contributions count towards your non-concessional contribution (NCC) cap or concessional contribution (CC) cap depending on whether you claim a tax deduction. Follow the steps below to claim a tax deduction on personal contributions. To find out whether you could benefit from making a personal deductible super contribution, you should speak to a financial adviser.
Other important considerations
Change in circumstances
If your circumstances change after you’ve lodged a valid Notice of Intent, you may be able to submit another form to:
• vary down the amount you intend to claim as a tax deduction (including to nil), or
• notify your fund that you intend to claim a tax deduction for additional contributions.
Time limits and other requirements apply. This is a complex area. Consult your financial adviser and/or registered tax agent.
ATO denies deduction
Include the tax deduction claimed for your superannuation contributions in your tax return. In limited situations, the ATO may deny your entitlement to the tax deduction.
For example, if you don’t have sufficient assessable income to offset the deduction you are claiming after allowing for other tax deductions.
If the ATO denies your tax deduction, you must provide a new notice to your super fund to vary down the amount of tax deduction claimed (see change in circumstances).