Declaring Superannuation Contributions On Your Return
In some circumstances, superannuation contributions can be claimed on your tax return if they are made to a super fund or retirement savings account. However, these circumstances are limited and may require professional advice to maximise the benefits.
Superannuation contributions that are paid by your employers directly to your super fund from your before-income tax cannot be claimed. These contributions include:
The compulsory super guarantee (increased to 11% on 1 July 2023)
Salary sacrificing super amounts
Reportable employer super contributions.
However, superannuation contributions that you make to your super fund from your after-tax income may be able to be claimed as deductions under certain circumstances. The personal super contributions that can be claimed 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
whether 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.
Before making the claim for the tax deduction against your personal super contributions, your super fund must be notified. You must give a notice of intent to claim or vary a deduction to your fund by the earlier of either the:
day you lodge your tax return for the year in which you made the contributions.
end of the income year following the one in which you made the contributions.
Your fund must send you a written acknowledgment, telling you they have received a valid notice from you. You must receive the acknowledgment from your fund before you claim the deduction on your tax return. Failure to do so, may result in the ATO denying a deduction for the super contribution made and potential penalties applied.
Maximising your superannuation’s potential could start with boosting your savings with contributions. However, it is advisable to seek professional advice or guidance before commencing any claims for super contributions.
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