a+ a-

Self-service super contributions

Attention: open in a new window. Print

The 1 July 2017 super reforms have opened up a fantastic new opportunity to build wealth in super and reduce your tax bill at the same time. That is, it’s now easier to claim a tax deduction on your personal super contributions than ever before.  
 
Before 1 July 2017, the only way most people could take advantage of the concessional (before-tax) contributions tax benefits was by salary sacrificing through their employer. Some people, such as the self-employed, could make voluntary personal contributions to super and claim a tax deduction but, most people were simply ineligible.
 
Now, anyone1, not just the self-employed, can make voluntary personal contributions to super and claim a tax deduction. This gives you more flexibility if your employer isn’t in a position to arrange salary sacrifice for you — such as a small business owner who doesn’t have the time to provide this service to their employees.  (Remember, concessional contributions are contributions you can make to super either with your before-tax salary or by claiming a tax deduction on after-tax contributions. Either way, for most people, concessional contributions are taxed at just 15 per cent — not your marginal tax rate which could be as high as 47 per cent.)
 
As an employee, you rarely have control on the timing of the salary sacrifice contributions made by your employer. This gives you that control so, for instance, you can time your final contributions leading up to 30 June each year and make the most of your contribution limits and the resulting tax benefits.  
 
Getting started 
To claim a tax deduction on your super contributions  make sure you: 
  • Check the age restrictions to make sure you’re eligible. There is a work test if you are aged 65 to 75.  
  • Lodge a ‘notice of intent to claim a deduction’ to your super fund within the timeframes.  
This change represents an opportunity for everyone, including those who are currently salary sacrificing, to gain greater control of their personal super contributions.
 
1 Fund and age restrictions apply.
 
Take the next step
To discuss your financial situation, make an appointment with a Bridges financial planner.
 
We have an established alliance with Bridges, to provide our customers with financial advice. Bridges has been helping Australians with financial advice for 30 years.
 
A Bridges financial planner will develop a plan specifically for you; one that’s tailored to your needs and circumstances to help you achieve your goals.
 
To make an appointment with a Bridges financial planner, call 1300 361 555. The initial consultation is complimentary and obligation free. 
 
Bridges Financial Services Pty Ltd (Bridges). ABN 60 003 474 977. ASX Participant. AFSL 240837.
This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making an investment decision based on this information, you should assess your own circumstances or consult a financial planner or a registered tax agent. 
Examples are illustrative only and are subject to the assumptions and qualifications disclosed.
Part of the IOOF group