Claiming a super tax deduction
05 May 2020
6
min read
Claiming a tax deduction for your personal super contributions may help reduce the amount of tax you pay, depending on your circumstances. Over 20,000 QSuper members submitted a claim in 2018-19, receiving an estimated $20.2 million back in total.1
Since 1 July 2017, more Australian workers have been eligible to claim a tax deduction for after-tax super contributions, also called personal super contributions or non-concessional contributions.
So if you make personal super contributions, claiming them as a tax deduction might mean paying less tax. Below we have outlined some of the main FAQs for you to consider.
Note: If you applied for early access to super under temporary COVID rules, scroll to the end of this article for important information.
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.
A tax deduction can be claimed for:
Eligibility conditions apply; see our How to Claim or Vary a Tax Deduction for Contributions factsheet.
How to claim a tax deduction on super contributions
Step 1
In Member Online, go to Account history & statements,
then Yearly transaction summary.
Step 2
Click on Claim a tax deduction and follow the prompts.
Step 3
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.
Contribution caps when claiming a tax deduction
Any personal contributions claimed as a tax deduction will be subject to the cap on concessional contributions made to all your super funds, including:
- Employer contributions
- Salary sacrifice contributions
- Contributions you claim a tax deduction for
Read more about super contribution caps.
Frequently asked questions
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.
Important information if you made a claim for early access
Individuals affected by coronavirus 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.
This is because the early access withdrawal falls under the “proportioning rule.” The proportioning rule prevents a member choosing which components to withdraw when a super benefit is paid.
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).
We’re here to help
For over 100 years QSuper has been there for members.
1. Assumes a 30% tax rate, less 15% contributions tax for an average claim of $6,500 by QSuper members with an estimated average net member benefit of $977.
2. You cannot claim a tax deduction for standard member contributions made to a Defined Benefit account.