What are personal super contributions?

• • Personal super contributions are amounts you contribute directly to your super fund.
  • If you claim a tax deduction for these contributions, they become concessional contributions and are effectively from your pre-tax income. They are taxed within the fund at a rate of 15%.
  • If you don’t claim a tax deduction, they are considered non-concessional contributions and come from your after-tax income or savings. These contributions are not further taxed.

Claiming deductions for personal super contributions:

• • To claim a deduction for your personal super contributions, follow these steps:
    • Give your super fund a notice in the approved form.
    • Obtain an acknowledgment from the fund.
  • There are other eligibility criteria you must meet.
  • The personal super contributions you claim as a deduction count towards your concessional contributions cap.
  • Consider the possible impacts before claiming a deduction:
    • Exceeding your concessional (before-tax) contributions cap.
    • Paying Division 293 tax if your combined income and concessional super contributions exceed $250,000.
    • Affecting your super co-contribution eligibility.
  • Note: Deductions can only be claimed in whole dollars. Any residual cents remain non-concessional contributions.