Did you know...
You can contribute into
your Accumulation account
if you are self-employed.
Jim Waldron
QSuper member since 1973
If you are self-employed and under age 75, you can pay contributions into your Accumulation account to help finance your retirement lifestyle.
For superannuation purposes, you are self-employed if you earn less than 10% of your annual assessable income1 from being treated as an employee for superannuation guarantee purposes. For example, a doctor may be substantially self-employed, but work one day a week in a hospital. If the income earned from the hospital is less than 10% of the doctor’s total annual income, a tax deduction can be claimed for personal contributions to super.
If your business operates as a company or trust, you are likely to be a director or an employee. In this case, you will not be able to claim a deduction for personal contributions. You may like to seek personal advice from your accountant, financial adviser, or the Australian Taxation Office if you are unsure about whether you are able to claim a deduction and if making deductible contributions is the best strategy for you.
Can I claim a tax deduction for my personal contributions?
Self-employed and unemployed people can generally claim a full tax deduction for their personal contributions to super. (People who have an employer paying into super for them generally cannot claim a tax deduction for their own contributions.)
If you are self-employed or unemployed, and already a QSuper member, you can contribute to your QSuper Accumulation account and claim a tax deduction. If you are not already a member, you can join if you have a spouse who is a QSuper member. More information can be found in the product disclosure statement for the Accumulation account (pdf).
To claim a tax deduction, certain conditions must be met. You may like to consult your accountant to decide whether claiming a tax deduction is right for you.
Example
Sam is working two days a week for Education Queensland. Sam wants to claim a tax deduction for his contributions to QSuper. At the end of the financial year, when Sam has worked out his assessable income, he must make sure the income he has earned from his employer is less than 10% of his total assessable income.1
If this is the case, Sam can claim a full tax deduction for his contributions. If the income from his employer is more than 10% of his assessable income, no deduction can be claimed.
How much can I contribute?
There is no limit to the amount you can claim as a tax deduction; however, there are caps on the amount of contributions that can be made to superannuation for you at concessionally taxed rates. Find out more about contribution caps.
How do I claim a tax deduction?
Complete a Notice to the QSuper Board of Trustees (pdf) form, or complete the declaration and notice included on the QSuper Deposit form (pdf) which you send with your deposit.
QSuper must acknowledge a notice for it to be valid and, once received, the notice cannot be revoked or withdrawn. It may be varied to increase or reduce the amount covered by the notice (which can be nil) before either the time you lodge your income tax return or the end of the financial year following the year the contribution was made, whichever is earlier.
QSuper is required to deduct 15% tax from any contributions for which you are claiming a tax deduction. These contributions may be taxed again when you take the money in cash, as they are concessional (before-tax) contributions. Your contributions and investment earnings must remain in superannuation, generally until you retire after reaching your preservation age, or turn age 65, which ever is sooner.