Friday, 01 September 2017 11:17

Can I make tax-deductible super contributions?

From 1 July 2017, you can now be an employee and make personal tax-deductible super contributions. If you’re self-employed, or substantially self-employed, or not employed, you have always been able to claim a tax deduction for your super contributions.

If you claim a tax deduction for your super contributions, this means these super contributions are treated as concessional contributions and count towards the concessional contributions cap.

Note: Anyone under the age of 18 can only make a tax deduction for super contributions when his or her income is from gainful employment, such as carrying on a business.

Prior to July 2017, individuals who were both employed and self-employed had to meet a 10% income test rule, while full-time employees were not permitted to make tax-deductible super contributions. Since 1 July 2017, the 10% income test rule will no longer apply when making tax-deductible super contributions, and full-time employees can also make tax-deductible super contributions.

Read 129 times Last modified on Tuesday, 03 April 2018 08:44