How to Claim Personal Super Contributions on Your Tax Return

Everyone knows that the savings for your retirement, i.e. your employer’s contributions, is called superannuation. But, did you know that you can claim personal super contributions on your tax return? Sounds amazing, right? Yet, this benefit doesn’t include your bosses’ contributions, but only your own personal contributions, i.e. money that comes out of your own pocket.

So, if you want to enjoy this benefit, read on and find out everything you need to know about claiming personal super back on your tax return. Even better, contact Syndeo Accountants – a Brisbane-based company offering professional financial assistance, accounting, and taxation services.

How to Make Personal Super Contributions?

First of all, let’s clarify what personal super really means. As already mentioned, it is the money you add to your superannuation fund ‘after-tax’, not your employer’s contributions which are pre-tax. Put simply, personal super contributions are your own after-tax contributions.

But, how do you make a tax-deductible contribution to your super fund? It’s very easy indeed. Here are the two simplest options:

  • As a bill payment – all you need to do is check your fund BPAY (short for Bill Payment) details and make sure the money reaches your super fund from your bank account a couple of days before the end of June.
  • Ask your employer to do it – this is really simple and similar to the regular salary sacrifice, i.e. your employer’s pre-tax contributions to your super fund, with the difference that it has to be done post-tax.

How to Claim Personal Super on Your Tax Return?

Now that you know how to make a personal contribution to your super fund, let’s dig deeper and find out how this tax-deductible super works on your return. Namely, the following are the two basic and crucial steps to consider:

  • Contact your super fund and let them know you wish to claim personal contributions on your tax return; and
  • Wait for their answer and ensure you get it before you complete your tax return lodgment.

As soon as these steps are complete, all you need to do is enter the amount you want to claim as tax-deductible at item D12, Personal Super Contributions.

How Much Personal Super Contribution Can You Claim on Your Tax Return?

Namely, the Australian Tax Office (ATO) has established some limits on how much super you can claim and how much can be added to your super fund.

To be more precise, the maximum amount that can be contributed to your super is $25,000 a year before-tax which includes both your employer’s and your own contributions. For instance, if your employer’s super contributions are $20,000, you can claim a maximum of $5,000 in that financial year.

For any further information, please don’t hesitate – get in touch with the best financial assistance company today – Syndeo Accountants.