Building your superannuation is one of the most effective ways to secure your financial future. One smart strategy to grow your retirement savings — while potentially reducing your tax — is by making personal super contributions. These are voluntary payments you make to your super fund, and if you meet the eligibility requirements, you may be able to claim them as a tax deduction. This can lower your taxable income and increase your long-term retirement balance.
Understanding how these contributions work, and how to claim a deduction correctly, is essential to making the most of this opportunity — especially as the end of financial year approaches.
What Are Personal Super Contributions?
Personal super contributions are payments you make voluntarily into your super fund from your after-tax income or savings. These are in addition to the compulsory contributions your employer makes on your behalf.
You can choose to:
- Claim a tax deduction – your contribution becomes a concessional contribution, taxed at 15% in your super fund.
- Not claim a deduction – your contribution remains a non-concessional contribution and isn’t taxed again.
How to Claim a Tax Deduction
To claim a tax deduction for your personal contributions, you must:
- Submit a valid notice of intent to your super fund using the approved form.
- Receive written acknowledgment from your fund before lodging your tax return.
- Claim the deduction when completing your tax return under ‘Personal super contributions’.
You must lodge your notice of intent before you lodge your tax return, or by 30 June of the following financial year, whichever comes first.
Important Considerations
Before claiming a deduction, it’s essential to understand the broader impact on your financial position:
- Contribution caps apply – exceeding the concessional cap could mean additional tax.
- If your income plus super contributions exceed $250,000, you may be liable for Division 293 tax (an additional 15% tax on your contributions).
- Claiming a deduction may make you ineligible for government super co-contributions.
- If you’re aged 67–74, you’ll need to meet the work test or work test exemption to be eligible to claim a deduction.
We’re Here to Help
Navigating superannuation rules and tax deductions can be complex. At Pisani Group, we help individuals make informed financial decisions that align with their goals.
Need guidance on your eligibility, contribution limits, or how to maximise your deduction?
Contact our team today for personalised advice and expert support.
Let’s work together to help you grow your retirement savings with confidence.
