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Personal Super Contributions before 30 June 2021

You may be able to claim a tax deduction for personal super contributions that you made to your super fund from your after-tax income, for example, from your bank account directly to your super fund.

Notice of Intent

Before you can claim a deduction for your personal super contributions, you must give your super fund a Notice of intent to claim or vary a deduction for personal contributions form (NAT 71121). You must then receive a letter from your Superfund acknowledging your contribution was received prior to 30 June.

Eligibility

There are other eligibility criteria that you must meet.

People eligible to claim a deduction for personal contributions include people who get their income from:

  • salary and wages
  • a personal business (for example, people who are self-employed contractors, or freelancers)
  • investments (including interest, dividends, rent, and capital gains)
  • government pensions or allowances
  • super
  • partnership or trust distributions
  • a foreign source.

The personal super contributions that you claim as a deduction will count towards your concessional contributions cap. When deciding whether to claim a deduction for super contributions, you should consider the super impacts that may arise from this, including whether:

  • you will exceed your contribution caps
  • Division 293 tax applies to you
  • you wish to split your contributions with your spouse
  • it will affect your super co-contribution eligibility.

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

Concessional contribution caps

For the 2020-21 financial years, the general concessional contributions cap is $25,000 for all individuals regardless of age.

Non-concessional contributions and contribution caps

Non-concessional contributions are:

  • from your after-tax income
  • not taxed in your super fund.

From 1 July 2017 to 30 June 2021, the non-concessional contributions cap is $100,000.

To find out more about individual super contributions read more from the ATO’s website.

To understand more about what contributions would best suit your personal situation, give us a call today.