It may be possible for you to claim some super contributions as a tax deduction.

This will be a useful strategy if …….

• You forgot to salary sacrifice or did not sacrifice as much as you could, or
• You have a large capital gain this year which you would like to reduce, or
• You will receive a trust distribution which you would like to reduce, or
• Your taxable income from any source will be over c.$35k & you would like to pay less tax

The most you can claim is $30k PLUS any unused caps from the previous 5 years if eligible, BUT this is reduced by any super guarantee paid by your employers AND any salary sacrificed amounts. You must also be over age 18 and, if aged between 65 and 74, satisfy the work test.

How do I do it? …….

1. Log onto your superfund and add up any concessional contributions made this financial year to date. Estimate what else will be contributed before June 30, and determine how much more you could contribute to bring you up to $30k.
2. To see if you could contribute even more to use up prior year caps. Log on to mygov ID. Navigate to ATO/super/info and see what caps you have unused from prior years that you can use. Note your super balance must be less than $500k to be eligible to use prior year caps. The unused caps drop off after 5 years. Therefore this is the last year you can use the 2020 cap.
3. Find out the BPAY code for making personal contributions to your fund and make sure the contribution is paid and cleared before 30 June. Different funds have different year end deadlines, so do it ASAP. If you have an SMSF simply transfer the contribution to the fund cash account.
4. Complete the intention to claim a tax deduction notice and send it to your superfund.
5. The superfund will send you a confirmation notice which you need to include with your tax papers. No notice – no tax deduction, so don’t lose it!

If you have any questions don’t hesitate to get in touch.

Lindsay 0413 952 180