Tax deductible super

Are the total contributions to your super less than $27,500 per year? If you're like most people in Australia, the answer is probably "yes", which means you can top up your super with personal contributions, and potentially claim them as a tax deduction.

How much super can I claim as a tax deduction?

To work out how much you can claim, deduct your employer's contributions, and any salary sacrifice you've made, from $27,500, and what you have left is the maximum you can contribute and claim as a tax deduction. You can also claim an additional tax offset (i.e. a reduction) if you contribute up to $3,000 to your spouse's super.

Concessional or non-concessional contributions?

Concessional contributions are ones that are taxed at just 15%. They include:

Employer contributions
Salary sacrifice
Personal, voluntary payments you claim as a tax deduction

Non-concessional contributions are voluntary payments to your super that aren't claimed as a tax deduction.

Four steps to contribute and claim

Step 1

Transfer your chosen amount to your super fund using the BPay code and reference number.

You'll find this in your member's login section of your fund's website.

Step 2

Download the form Intent to claim a deduction for personal super contributions

Step 3

Fill out the form and send it to your super fund. In a few days they should send a letter back to confirm that they've received it.

Step 4

Include your claim in your tax return and attach your confirmation letter. The ATO then does the rest.

How do I claim super contributions on my tax return?

If you're completing your own (individual) tax return, you should claim your personal super tax deduction at section D12 Personal superannuation contributions. Simply write in the amount you contributed, and confirm that you've sent the Notice of Intent form to your fund and received acknowledgement from them. Remember, do not include your employer contributions or your salary sacrifice.

How do I claim salary sacrifice on my tax return?

You don't! The amount deducted from your pay via salary sacrifice is not part of your assessable income for tax purposes. Instead, your employer tells the ATO how much has been salary sacrificed, and then the ATO deducts that from your income before it calculates the tax you must pay. So it's already been deducted.