Claiming a super tax deduction
18 April 2021
6
min read
Claiming a tax deduction for your personal super contributions may help reduce the amount of income tax you pay, depending on your circumstances.
You may be able to claim a tax deduction for personal super contributions that you made to your super fund from your after-tax income, for example, from your bank account directly to your super fund.
If you make personal super contributions, claiming them as a tax deduction might mean paying less income tax.
Who can claim a super tax deduction?
According to the Australian Taxation Office (ATO),1 individuals eligible to claim a deduction for personal contributions include those who get their income from:
- Salary and wages
- A personal business (for example, self-employed contractors, or freelancers)
- Investments (including interest, dividends, rent and capital gains)
- Government pensions or allowances
- Super
- Partnership or trust distributions
- A foreign source.
What can a tax deduction be claimed for?
A tax deduction can be claimed for:
Eligibility conditions apply; see our How to Claim or Vary a Tax Deduction for Contributions factsheet.
What to consider before claiming a super tax deduction
It pays to understand how super contribution caps work, because going over these caps may mean extra tax.
The personal super contributions that you may claim as a deduction count towards your concessional contributions cap.
When deciding whether to claim a deduction for super contributions, you should consider the impacts that may arise from this.
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.
Is claiming a tax deduction right for you?
Before you claim a tax deduction, it can be a good idea to get advice from your accountant, financial adviser, or the ATO to make sure this is the best strategy for you.
How to claim a tax deduction on super contributions
In Member Online, go to Account history & statements, then Yearly transaction summary.
Click on Claim a tax deduction and follow the prompts.
Once you have our acknowledgment letter, lodge your tax return, stating the amount you are claiming in the supplementary section of your tax return.
You can also complete the form attached to this factsheet.
Frequently asked questions
Q: Does claiming for early access to my super under temporary COVID rules impact my ability to claim a tax deduction?
A: Individuals affected by COVID were able to apply to access up to $10,000 of their superannuation in 2019-20 and up to a further $10,000 in 2020-21 (this option no longer exists). If you applied for early access and intend to claim a tax deduction for after-tax contributions, you need to be aware that the amount that can be deducted will be proportioned. That is, it’s worked out using a formula that will be equal to the amount of the personal contribution still “held” by the fund.
Example: Let’s say you’ve made $8,000 of after-tax contributions to your super account and are intending to claim this as a tax deduction. Before you log in to Member Online and click on ‘Claim a tax deduction’ though, you submit a claim to the ATO to release 10% of your account balance under early access.As a result, 10% of your after-tax contribution ($800) would be assumed to have been paid back to you, so you would only be able to claim a tax deduction on the remaining amount ($7,200).
Q: Can first home buyers claim a tax deduction on personal contributions?
A: First Home Super Saver Scheme (FHSSS) contributions released to you for a first home deposit or re-contributed to your QSuper account are not eligible for a tax deduction.
Q: Can the downsizer contribution be claimed as a tax deduction?
A: Contributions made to your super as an eligible downsizer contribution are not eligible for a tax deduction.
Q: Can I claim a tax deduction and still get the government co-contribution?
A: Personal contributions for which you claim a personal tax deduction are not eligible for a government co-contribution to your super.
1. Australian Taxation office, Claiming deductions for personal super contributions, accessed 9 March 2021 at ato.gov.au
2. You cannot claim a tax deduction for standard member contributions made to a Defined Benefit account.