If you are a sole trader or business owner who puts extra money into your own super, you may be able to claim a tax deduction for it. But the deduction depends on a step that is easy to miss: a notice of intent.
How it works
You give your super fund a notice of intent to claim a deduction. The fund then sends you a written acknowledgment. You must have that acknowledgment in hand before you claim the deduction on your tax return.
The timing rule
The notice must reach your fund by the earlier of two dates: the day you lodge your tax return for the year you made the contribution, or the end of the following income year. If you plan to lodge by 31 October, do not leave this to the last minute.
When a notice is not valid
The ATO says a notice is only valid if you are still a member of that fund and the trustee still holds the contribution. It also fails if it overlaps an earlier notice, or if the fund has started paying an income stream based on that money. After a partial rollover or withdrawal, you can only deduct the portion that remains in the fund.
What to do
- Send the notice early. Many funds have an online form. Do it as soon as the contribution has cleared.
- Wait for the acknowledgment. Until it arrives, you cannot claim. You can either hold off lodging or lodge without the deduction and ask for an amendment later.
- Do not roll over first. Moving the money to another fund before you lodge the notice can make it invalid.
- Check your limits. Contributions count towards your concessional cap, so confirm your position with your accountant or the ATO before you top up.
- Keep the paperwork. Save the notice and the acknowledgment with your tax records.
This is general information only, so check how it applies to your situation.