Tax Deductible Contributions

If you 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 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 
  • 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. 

From 1 July 2017 the requirement that you derive less than 10% of your income from employment sources has been abolished and regardless of your employment arrangement you may be able to claim a tax deduction. Those aged 65 to 74 will still need to meet the work test in order to be eligible to make a contribution and claim a tax deduction. 

Example

John is a fulltime lawyer. During the 2017-18 year, he earned $70,000 before tax. John has no other income. 

John makes a personal contribution to an eligible superfund and notifies them that he intends to claim a deduction. 

John's superfund acknowledges that John will claim a $15,000 deduction and taxes the contribution at 15%. John is eligible to claim a deduction for $15,000 and does this in his 2018 tax return. 

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.