Personal Super Contribution changes

Important changes to claiming personal super contributions for employees prior to 30 June. Please read if your are an employee and wish to take advantage of extra tax deductions for the 2018 financial year.

From 1 July 2017 the 10% employment income test that prevented many people from claiming a deduction for personal superannuation contributions was abolished.

This was an important change for those who are unable to access salary sacrificing through their employer or those that are part employed with other sources of income (e.g. small business, investment).

To ensure that the contributions are deductible, what do we need to consider?

Notice of intention to claim a tax deduction

To qualify and claim the deduction, a notice of intention must be received and accepted by the superannuation fund prior to the lodgement of the member's income tax return or 30 June of the year following, whichever occurs first.

In some circumstances it may be necessary to lodge a notice of intention earlier. If you have a member planning to rollover or withdraw their benefits or seeking to commence a pension, lodgement and acceptance of the notice must occur before these events take place.


In order for a contribution to be allocated in the current financial year payment must be received by the superannuation fund. This is important for ensuring deductibility and the allocation towards a members contribution cap in this financial year.

CAUTION: 30 June 2018 falls on a Saturday! The timing of contributions is therefore crucial to ensure that they are received by the member's superannuation fund by no later than 29 June 2018.

Some superannuation funds have a cut off date just prior to the end of financial year to ensure that contributions received are processed and allocated in the current year. Please check with the relevant superannuation fund.

Also take into account the time required for electronic payments or transfers to be processed by the client's financial institution and received by the superannuation fund. Transfers within the same institution may not occur automatically or on the same day.

Contribution Caps

Caution is required to avoid excess contributions. Excess amounts are assessable at the members marginal tax rate, thus reducing the tax benefit obtained from the deduction claimed.

The concessional contribution cap for all members, regardless of age, reduced to $25,000 on 1 July 2017.

Do confirm employer contributions paid for the year to date. How frequently does the employer make its superannuation payments? Quarterly? Monthly?

Check the members superannuation statement for prior year contributions received in the current financial year. June contributions will generally be received by the superannuation fund in July (e.g. the following financial year).