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Are contributions tax deductible?

Yes. Tax deductions are available on contributions made as personal contributions (eg. self-employed members) and contributions made on behalf of a spouse. The table below details the maximum deductible contribution amounts for the 2007/2008 financial year:

Contributed by: Deduction/rebate (effective 1 July 2008)
You as a personal contribution (if you are self-employed)

You are eligible to claim a deduction if the amount you earn as an employee is less than 10% of your combined assessable income and reportable fringe benefit for the year/and

  • You meet age related conditions.
  • You have written to your super fund or RSA provider in the approved ATO form and advised them of the amount claimed, and they have agreed to this.

Personal super contributions you claim as a tax deduction are taxed at 15%. There is no limit on the amount you can claim as a deduction.  However, there are caps on the amount of concessional and non-concessional contributions you can make.

Personal contributions for which you:

  • Claim a deduction are concessional contributions.
  • Don’t claim a deduction are non-concessional contributions.

Note: If you claim a deduction for a personal contribution, you will not be eligible for a super co-contribution on the amount you claim.
You on behalf of your spouse You may be eligible for a tax offset of 18% on super contributions of up to $3,000 (after-tax) made on behalf of a low income or non-working spouse. The maximum tax offset contribution reduces by $1 for each dollar that the spouse's assessable income (including reportable fringe benefits) exceeds $10,800, reducing to zero where the spouse's assessable income is $13,800 or more.
Your employer under a salary sacrifice arrangement You can’t claim a deduction or tax offset for super contributions that are paid to your super account under a salary sacrifice arrangement. Under law, these contributions are made by your employer, not you.

A contributions tax rate of 15% applies to contributions you make from your pre-tax (salary sacrifice) pay. There are other tax benefits and you should seek independent personal advice.
You as a personal contribution (from after-tax income) You can’t claim a deduction or tax offset for super contributions that are paid to your super account from after-tax income. There are other tax benefits and you should seek independent financial advice.

For more information on tax deductions, contact the ATO on 13 10 20.

Important Notice

The advice contained on the Prime Super website does not take into account your particular objectives, needs or financial situation. Before making a decision regarding the acquisition or disposal of a financial product, you should assess whether the advice is appropriate to your objectives, needs or financial situation. You may wish to make this assessment yourself or seek the help of an adviser. Prime Super takes no responsibility for you acting on the information provided. Any decision that you make is at your own risk. Before acquiring a financial product you should obtain a Product Disclosure Statement (PDS) relating to that product and consider the contents of the PDS before making a decision about whether to acquire the product.

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