Work for yourself? You deserve a break

If you’re self employed (and you’re under 75), you can pay contributions into your Accumulation account, and earn a tax break as part of the process.

For superannuation purposes, you’re ‘self employed’ if you earn less than 10% of your annual assessable income1 as an employee.

An example

Let’s say you’re a doctor working mainly for yourself, but with one shift a week in a hospital. As long as the income you earn from the hospital is less than 10% of your total annual income1, then you can claim a tax deduction on your personal super contributions. If it’s over 10% then you can’t claim a deduction.

It’s a little different if your business operates as a company or a trust

In that case, it’s likely that you’re either a director or an employee, and you won’t be able to claim a deduction for personal contributions. If you’re unsure about whether you’re able to claim a deduction (and if this is the best strategy for you), it’s probably best to get advice from your accountant or advisor, or from the ATO.

Can I claim a tax deduction for my personal contributions?

If you’re self-employed or unemployed, then generally you can claim a full tax deduction for your personal super contributions (although it’s best to have a chat to your accountant about the exact conditions, and whether it’s the best strategy for you).

If you are self-employed or unemployed, and you’re already a QSuper member, then it’s just a matter of contributing to your QSuper Accumulation account and then claiming a tax deduction. If you’re not a member, but your spouse is, then you can join too. Have a read through the Accumulation Account Guide for more information.

There’s no limit to how much you can claim as a tax deduction

But there are caps on the amount of contributions you can make to superannuation at concessionally taxed rates. Find out more about contribution caps.

How to claim a tax deduction

Just fill in a Notice to the QSuper Board of Trustees form, or complete the declaration and notice included on the Deposit form, which you send with your deposit.

We need to acknowledge a notice for it to be valid, and, once we receive it, the notice can’t be revoked or withdrawn. It may be varied to 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.

We’re required to deduct 15% tax from any contributions for which you’re 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 65, whichever is sooner.

1. Including reportable fringe benefits and any investment income or assessable pension. Superannuation pension income is not assessable if you are over age 60 at the time the pension income is paid.