Tax deductible Superannuation Contributions
An additional concessional contributions up to your concessional contributions cap (currently $25,000) and you can claim an income tax deduction for doing it.
Which means you can tax effectively top up your super, provided you don’t breach your concessional contributions cap.
The super guarantee payments made by your employer, as well as any salary sacrificed contributions, are also included in your concessional contributions so effectively the amount you can pay into super through a tax deductible contribution is the difference between those other contributions and the $25,000 cap.
A 15% contributions tax is deducted from any superannuation contribution that has been claimed as a tax deduction.
If you are aged between 65 and 74 years of age, you’ll need to pass the work test to make a tax deductible contribution.
Which means that you have to work 40 hours or more in a consecutive 30 day period in the financial year in order to make contributions.
As well as making super contributions from your self-employed income or employment income, it is also possible to make super contributions from investment income including dividends or rental income and capital gains.
If you want to claim a tax deduction for your super payment, it must be made by June 30th and you need to advise your super fund that you’ve made the payment by the time you lodge your tax return.