Self-Employed Contributions

If you're substantially self-employed, meet some eligibility requirements and legalsuper receives your payments by 30 June, you may receive a tax deduction for personal contributions that you pay into your super.

Am I eligible?

You are, if:

  • you made personal contributions into your legalsuper account 
  • you satisfy the ‘maximum earnings as an employee’ condition 
  • you meet the age-related conditions 
  • you made the contributions in order to obtain super benefits for yourself, or for your dependants in the event of your death 
  • you have written to legalsuper or completed a 'Notice of intent to claim a deduction' form advising the amount you intend to claim as a deduction, and 
  • your legalsuper has acknowledged your notice of intent and agreed to the amount you intend to claim as a deduction.

What are the ‘maximum earnings as an employee’?

You can claim a deduction on personal contributions, even if you receive some income as an employee, as long as you satisfy the ‘maximum earnings as an employee’ condition.

Under this condition, the amount you earn as an employee must be less than 10% of your combined assessable income and reportable fringe benefits for that income year. This is the case regardless of whether you your employer has paid super on your behalf.

Example

John is a self-employed lawyer. During the 2015-16 year, he earned $70,000 assessable income from his business. He also worked as a contractor to a large firm, where he earned $6,500 before tax. John may still be eligible to claim a deduction for his personal super contributions as the income from his contract work  ($6,500) is less than 10% of his combined assessable income and reportable fringe benefits ($76,500 x 10% = $7,650).

What are the age restrictions?

If you are 75 or over, you can only claim a deduction for contributions you made before the 28th day of the month following the month in which you turned 75.

If you are under 18 at the end of the income year, you can only claim a deduction for your personal super contributions if you earned income as an employee or a business operator during the income year in which you claim the deduction.