28 May 2019
Tax deductions now allowable for personal super contributions
Did you know that individuals are able to claim a deduction for personal superannuation contributions, commencing for the year ended 30 June 2018? It’s worth considering this before making additional contributions to your superannuation.
Contributions are made from after-tax income, out of your personal account, and a deduction is claimed in your tax return.
In order to claim a tax deduction for the financial year, the ATO requires certain eligibility requirements to be met, including:
You cannot claim a deduction for superannuation contributions paid by your employer directly to your super fund under Super Guarantee contribution rules.
However, you may be able to increase the contributions by:
The personal super contributions that you claim as a deduction will count towards your concessional contributions cap ($25,000).
When deciding whether to claim a deduction for super contributions, you should consider the super impacts that may arise from this, including whether:
If you exceed your cap, you will have to pay extra tax and any excess concessional contributions will count towards your non-concessional contributions cap.
Still have questions? Feel free to contact Jemma Dingle at our member North Financial Advisors at firstname.lastname@example.org
Jemma Dingle is a Financial Advisor at North Financial Advisors Pty Ltd.
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