Benefits of after-tax contributions
After-tax contributions (subject to contribution caps) benefit from generally lower tax rates on investment earnings compared to other investments, offering tax relief and enhancing your super's long-term growth potential. These contributions, also known as non-concessional contributions, are made from income that has already been taxed. Initial contributions from after-tax pay are reclassified as before-tax contributions, attracting a super tax of 15% (instead of the marginal tax rate) if they are claimed as tax deductions. The extent of the benefit you gain from claiming a deduction depends on your personal tax rate and the applied super tax.
Make a contribution
Notify us:
Either complete the Notice of Intent Form or send us the ATO's paper form.
Wait for acknowledgment:
We'll process your request and notify you once it is complete. You must receive this acknowledgement from us before claiming the deduction on your tax return.
How to make a contribution:
Log in to MemberAccess or use BPAY to make a personal super contribution before June 30.
Include in your tax return:
Declare the claimed amount on your tax return under the Individual Tax Return supplement section.
Eligibility for claiming a tax deduction
To be eligible to claim a tax deduction, it is essential that you have yet to use the contributions for an account-based pension. The contributions must still be present in your super account, and you must meet specific age-related criteria and work tests and have received acknowledgement from your fund or RSA provider.
Limits and timing for claims
Deductions cannot be claimed on employer contributions, transferred super funds, or contributions under specific schemes such as the First Home Super Saver Scheme. It's important to note that claims must be made before submitting your tax return or by the end of the following financial year after making the contribution.
Changing or cancelling your claim
You have the flexibility to adjust or cancel your claim under specific conditions. This can be done online or via the Notice of Intent form.
Tax implications on personal contributions
Claiming a deduction might affect your eligibility for government co-contributions. It's crucial to understand how claiming affects your overall tax situation.
Frequently Asked Questions
Deductions are possible from 67 to 75 years, with work criteria. Not allowed over 75.
Only personal after-tax contributions are deductible. Deductions are not allowed for employer contributions, FHSSS amounts, downsizer contributions, or contributions from other funds.
Depends on personal circumstances. Financial advice is recommended.
No, but a tax offset might be available.
There is no limit on the deduction amount, but it is subject to annual super contribution caps.
