How to claim tax deductions for personal super contributions

Did you know you can claim a tax deduction if you make personal post-tax super contributions? Here’s what you need to know to reap the benefits.

You can’t claim a deduction for regular super contributions from your employer, or if you make pre-tax salary sacrificed contributions.

But if you’re making additional contributions from your post-tax pay, then you may be in luck. If this describes you, you’ll need to fill out a notice of intent to claim or vary a deduction for personal contributions form (also known as form NAT 71121).

Read: What the ATO is looking for at tax time this year

This form needs to be sent to your super fund, which must acknowledge in writing that it received it before you lodge your tax return.

You also need to meet some eligibility criteria.

According to the Australian Taxation Office (ATO), for contributions made after 1 July 2017,  you are eligible to claim a deduction if they were not paid to a super fund that was a public sector super scheme in which you have a defined benefit interest or a constitutionally protected fund (CPF) or any other untaxed fund that wouldn’t count your contribution in its assessable income.

Read: What you need to know about capital gains tax

There is, unfortunately, an age limit to this tax deduction. If you are aged 75 or over, you can only claim a deduction if the contributions were made before the 28th day of the month following the month in which you turned 75.

If you do intend to claim this deduction, the contributions in question will be subject to a 15 per cent tax rate.

Also note if you claim the deduction, you will not be eligible for the government’s super co-contribution scheme.

Read: Stage three tax cuts to mainly benefit older Australians

The personal super contributions that you claim as a deduction will count towards your concessional contributions cap.

If you exceed this cap, you will have to pay extra tax and any excess concessional contributions will count towards your non-concessional contributions cap.

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Brad Lockyer
Brad Lockyer
Brad has deep knowledge of retirement income, including Age Pension and other government entitlements, as well as health, money and lifestyle issues facing older Australians. Keen interests in current affairs, politics, sport and entertainment. Digital media professional with more than 10 years experience in the industry.
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