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A superannuation deduction you (probably) can claim (but not till 2018!)

On a positive note, from 1 July 2017, it is much easier for employees to claim a deduction in their own tax returns for personal superannuation contributions. These are the contributions made in addition to the 9.5% superannuation guarantee and salary sacrifice contributions, made by their employers. The change is a result of removal of the old “10% rule”, which required that you derive less than 10% of your income from employment sources.

Please note that the $25,000 annual cap applies to concessional (deductible) superannuation contributions and includes superannuation guarantee contributions.

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. The work test requires that you have worked at least 40 hours within 30 consecutive days in a financial year.

If you are aged 75 years or older, 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 (note: for members over 75 super funds can only accept superannuation guarantee contributions).

There is some paperwork required: you need to complete a form to document your intention to claim a deduction and provide it to your superannuation fund, and receive an acknowledgement back. Please get in touch with us and we would be happy to assist you with navigating the eligibility rules and the paperwork.


The information and opinions in this article were prepared by Ruddicks Chartered Accountants (“Ruddicks”) for general information purposes only.

Taxation is only one of the matters that must be considered when making a decision on a financial product. The taxation considerations discussed in this article are based on the continuation of the present laws and their interpretation. The tax consequences of any investment will depend on individual circumstances.

In preparing this article Ruddicks have not taken into account the investment objectives, financial situation and particular needs of any particular investor. The information contained herein does not constitute advice nor the promotion of any particular course of action or strategy and you should not rely on any material in this article to make (or refrain from making) any decision or take (or refrain from taking) any action.

Ruddicks are not licensed to give financial product advice under the Corporations Law. You should consider taking advice from an Australian Financial Services Licensee before making a decision on a financial product such as superannuation.

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