Tax deductible contributions to superannuation

Did you know you may be able to claim a tax deduction for personal contributions made?

The personal contributions you claim as a tax deduction are treated as concessional contributions which are taxed at 15%.

When deciding whether to claim a deduction for super contributions made during a financial year, you should consider the following possible consequences:

  • It will reduce your taxable income by the amount that you claim, and the amount of tax you need to pay when you complete your tax return
  • You may be eligible for a low-income superannuation tax offset on the tax paid on the contribution
  • It will count towards your concessional contribution cap ($27,500 in FY23, $30,000 in FY24) and may incur extra tax if you exceed it
  • Your total income and concessional contributions for the year may exceed $250,000 combined, triggering an additional 15% Division 293 tax (you will be notified by the ATO if this is the case)
  • If you’re planning to split all or part of your contributions with your spouse but you also want to claim a tax deduction for them, you must give the notice of intent to claim a deduction first
  • It will affect your super co-contribution eligibility
  • Your contribution must be in the account of your super fund before 30 June so don’t leave it too late
  • The deduction will affect your income for some tax offsets, Medicare levy surcharge and concessions.

This information provided above is factual advice.

Before deciding to claim a tax deduction for a personal contribution you should seek advice from a financial adviser to talk about your superannuation, personal insurances and financial planning.

Before you claim a tax deduction

To claim a tax deduction, you will need to notify your super fund of your intent to do so. If you bring this to our attention we can assist with documentation when preparing your income tax return.

You must notify your super fund by the earlier of either the day you lodge your tax return for the financial year in which you made the personal contributions or the end of the next income year (for example 30 June 2025 for the 2023/24 financial year).

A financial planner from Knight Financial Advisers can help you explore your options for contributions, investments and more. Contact us to book an appointment.

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