Personal Superannuation Contributions –
Now Tax Deductible for Most Taxpayers
Prior to 1 July 2017, taxpayers had to meet strict rules to make personal tax-deductible superannuation contributions.
The pre-July 2017 10% rule stipulated that taxpayers could not claim a tax deduction for personal superannuation contributions, if more than 10% of their total assessable income, reportable fringe benefits, and reportable employer superannuation contributions, came from being an employee.
In essence the rule was mainly applicable to predominantly self- employed taxpayers. But now since the 10% rule was abolished in the May 2017 Federal Budget, the ATO makes no such restrictions on individuals looking to make tax-deductible contributions.
Regardless of whether they’re employed, self-employed, or a combination of both, most people should be able to claim tax deductions for personal super contributions. Even taxpayers who receive their assessable income solely from any of partnership or trust distributions, government pensions and allowances, investments, or foreign sources, can claim a tax deduction for such contributions.
Before you can claim a deduction, you must give your super fund a ‘Notice of intent to claim or vary a deduction for personal contributions’ form (NAT 71121), and then receive an acknowledgement from your fund.
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