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4 Reasons to Make Personal Tax-deductible Super Contributions

4 Reasons to Make Personal Tax-deductible super contributions

Since 1st July 2017 you have ability to contribute to super personally and still claim tax deduction for your contribution, which effectively provides you with the same outcome and benefit as salary sacrifice arrangement through your employer.  

This is great news that provides more flexibility as to how and when to contribute to super, as before 1st July 2017 the tax deduction was only available to self-employed. 

But now it is available to most people and can be a great way to improve your superannuation and retirement savings, while assisting with managing your tax bill for the financial year.  

You are eligible if you are: 
  • Below 75 
  • Meet the work test if you are of age between 65-74 
  • No test if you are below age of 65

You can make those contributions any time of the year and claim your tax deduction when doing your tax return. 

You have to advice your super fund before the end of the financial year that you wish to claim tax deduction for specified contributions. 

There is a limit of $25,000 a yearso don’t go over that limit.  

There are specific exceptions, but I will explain them in another article.  

If you claim tax-deduction for your contributions, then you cannot claim government super co-contribution for those contributions. 

4 reasons to make this type of contribution to benefit the most:

If you are on high MTR and you cannot have salary sacrifice arrangement 

2. If you are self-employed – you have no employer and no SGC (Super Guarantee Contributions) 

3. If you sold an asset and you are to pay a CGT (Capital Gains Tax) 

4. If your employer does not provide salary sacrifice arrangement, but you want to top up your super savings.  

If you really want to understand all tax savings by using super contributions, watch my video about salary sacrifice as the tax savings are exactly the same. 


by:  Katherine Isbrandt CFP®
Money Strategist & Retirement Planner
Principal of About Retirement

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