How to claim your tax deduction for personal super contributions before 30 June 2024

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The new super rules mean that anyone under 67* years can claim a tax deduction for their personal contributions to super.

The maximum (tax) deductible contribution you can make is $27,500 per year. That limit includes:

• Any super put in by your employer (11% in 2023/24 ), and

• Any salary sacrifice amounts you contribute.

However, the time to claim is limited ! Here’s what you need to do:

1. Get your funds together and see how much you are able to contribute by (and preferably before) 30 June

• Remember that you can only contribute up to the $27,500 annual limit;

• Check the amount of super your employer has and/or will contribute to your super by the end of the financial year; and

• Check any salary sacrifice amount you may have already put into your super.

2. Make your personal contribution well before the 30 June 2024 deadline

• Make any contribution as soon as possible.

• June is a very busy time for super funds, and the date of your contribution is actually the date your fund has received/processed any contribution, and NOT when you deposit the funds.

3. Contact your super fund or look on their website to find out how they do it:

• There will be a form for you to complete - you can usually make payments as a direct debit or Bpay 

 4. Let the ATO know that you want to claim a deduction by:

• Completing the ATO form found here (elect to make a deduction for personal super contribution); or

• Check with your super fund as they may have an election form; or

• You can lodge the form with your fund and let them know you are intending to claim (or part of) your contribution as a tax deduction.

TIP: Timing is important, if you want to claim the deduction for 2024!

That is, you need to make the contribution before the end of this current 2023/24 financial year
i.e. before 30 June 2024* for your contribution to count!

Your super fund will let you know they have received the election form, which means they’ve notified the ATO. 

AND THEN YOU ARE ABLE TO CLAIM THE DEDUCTION!

Other things to be aware of:

What happens if you claim too much (i.e. you go over the $27,500 limit)?
You may have to pay an excess contributions tax (tax at your personal rate + penalty)

If you are considering starting a pension from your super, the fund must have your election before you start a pension with this amount. Otherwise you won’t be eligible for any tax deduction.

Age limits and work test requirements for contributions:

Additional deductions - carry forward contributions

From 1 July 2019, new rules were introduced that allow eligible taxpayers to claim tax deductions for the unused portion of the super concessional contributions caps from prior years.

The new rules give taxpayers the capacity to look back on each financial year commencing from 1 July 2018 to calculate the ‘unused’ portion of their concessional contributions cap in each financial year. 

Once calculated, taxpayers can ‘carry forward’ and, when desired, ‘catch up’ and claim the ‘unused’ portion of their concessional contributions caps in a later financial year. Claiming the unused portion of concessional contributions caps in a later financial year can achieve a better tax outcome for that financial year, and maximise the amount contributed to super.   

The ‘unused’ cap is effectively the difference between the concessional contribution cap for the financial year, less the total of all before tax contributions made in that same financial year.

Am I eligible ?

You can only claim unused super contributions from previous years if your total super balance is less than $500,000 in the financial year at previous 30 June, ie the year before you make your catch up contributions.

How to find out:

Check your super balance on MyGov for details of additional carry forward super contributions you could take advantage of – this can grow your super savings and also provide you with the opportunity to invest funds as you wish.

For more info, check out this quick primer on types of superannuation contributions.

Really important : What will you do with any deduction?

TIP: Paying off your non tax-deductible debt first will help get you debt-free and saving faster!

Next steps

Call us for a quick chat or drop us a line for advice about your tax and super contributions.

* 30th June 2024 is a Sunday

** Work Test

From 1 July 2022 if you are under 75 years, you will no longer need to meet the work test to make or receive non-concessional super and salary sacrifice contributions.

• If you are 67-74 , you WILL have to meet the work test if you are claiming a personal super contribution deduction.

• To claim a tax deduction on voluntary contributions to your super, if you are 67 - 75 years, you must be able to show that you have been gainfully employed for 40 hours or more in any 30-day period in a financial year.

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