You might be able to claim a tax deduction for personal Superannuation Contributions that you made to your Super fund from your after tax income.
IN BRIEF
- 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) and receive an acknowledgement from your fund. There are other eligibility criteria that you must meet.
- Concessional (before tax) Super Contributions include employer Super Contributions made on your behalf, any salary sacrifice contributions you make, or any personal contributions (from your after tax money). The personal Super Contributions that you claim as a deduction will count towards your Concessional Contributions Cap.
- You may be able to claim a deduction in your tax return from the after tax contributions to your Super fund. These contributions are taxed at 15% when they are received by your Super fund provided your adjusted taxable income is less than $250,000 annually.
- If you are eligible and are intending to make personal concessional contributions for FY2021 tax benefit by topping up your Super Contributions to $25,000, please ensure funds are deposited into your respective Super fund by 20th June 2021. If salary sacrificing you should discuss this with your employer. Please also ensure to notify your Superannuation fund of these contributions and complete and submit the relevant paperwork so you can claim deduction in your 2021 Income Tax Return.
- From 1 July 2021, the deductible concessional contributions cap will increase to $27,500 for the FY2022.
If you are thinking of making a contribution and want to know more, we highly encourage you to speak to our experts.
Have you noticed our #FridayExpertTips... here's one that relates to #Taxation
"The golden rule: Keep records! Good record keeping is your best friend for efficient business management and will also make life easier if the ATO ask you questions."