Effective 1 July 2017, the 10% maximum earnings condition was removed for the 2017-18 and future financial years. This means most people under 75 years old can claim a tax deduction for personal super contributions (including those aged 65 to 74 who meet the work test). Please be aware this is related to super contributions made from personal funds after tax (i.e. not under a salary sacrifice arrangement or compulsory super paid by your employer).

You can claim a deduction for personal super contributions made on or after 1 July 2017 if:

  1. You made the contribution to a complying super fund or a retirement savings account that is not a:
    – Commonwealth public sector superannuation scheme in which you have a defined benefit interest
    – CPF or other untaxed fund that would not include your contribution in its assessable income
    – Super fund that notified the ATO before the start of the income year that they elected to treat all member contributions to
    > the super fund as non-deductible, or
    > the defined benefit interest within the fund as non-deductible
  2. You meet the age restrictions
  3. You notify your fund in writing of the amount you intend to claim as a deduction
  4. Your fund acknowledges your notice of intent to claim a deduction in writing

If you intend to make a claim for personal super contributions in your 2018 income tax return, you need to notifiy your fund in writing of the amount you intend to claim. The fund will then provide an acknowledgement (usually in writing) which you need to present to your tax agent when having your income tax return prepared.

It is important to be aware that the contribution leaving your hands does not enable a deduction. The contribution needs to be received and processed by your fund before 30 June for the amount to be available as a tax deduction. In our experience, we recommend allowing a minimum of 10 days for this to occur.

In addition, we highly recommend you seek professional advice from a licenced financial planner when considering making personal super contributions.

For more information please refer to ato.gov.au/superchanges

Lisa Hooton.

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