How can I claim a tax deduction for Personal Superannuation contributions?

Simply making a personal superannuation contribution does not automatically entitle to you a tax deduction.

There are rules in place and processes that must be completed before your accountant can claim the contribution as a tax deduction.

The Super fund must issue you with a letter of acknowledgment to claim

And the payment MUST have been received by the superfund by the 30th June, (not simply just paid by you by the 30th June)

📝 Step 1: Lodge a “Notice of Intent to Claim”

Before you can claim a deduction, you must tell your fund of your intention by completing a Notice of intent to claim or vary a deduction for personal super contributions (ATO form NAT 71121).

You can usually:

• Contact your Super fund

• Complete it online in your super fund’s portal, or

• Download the form from the ATO website and email or post it to your fund (much longer process).This notice is often referred to as your Letter of Intent.

📄 Step 2: Wait for the Acknowledgement Letter

Your super fund will send you an Acknowledgement of your Notice of Intent once they’ve processed it. This is a critical step — you cannot claim a tax deduction until this acknowledgment has been received.

The fund must confirm that:

• The contribution was received before 30 June of the relevant income year; and

• You still held the money in your account (i.e. it wasn’t withdrawn, rolled over or used to start a pension) when the notice was processed.

If your super fund has already started paying you an income stream or you’ve rolled your balance over, you may lose eligibility to claim the deduction.

💸 Step 3: Claim the Deduction in Your Tax Return

Once you have your fund’s acknowledgment, you can claim your deduction at Item D12 – Personal superannuation contributions on your individual tax return (or we’ll do this for you if we prepare it).

When you claim a deduction:

• The super fund will deduct 15% contributions tax from the amount claimed (standard rate, though it varies for some, depending on your personal circumstances).

• You’ll receive the benefit of a tax deduction at your marginal tax rate, reducing your taxable income for the year.

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⚠️ Step 4: Be Aware of Contribution Caps

There’s an annual limit on concessional (tax-deductible) contributions:

This cap includes:

• Employer SG contributions,

• Salary-sacrificed contributions, and

• Any personal super contributions you claim as a deduction.

  
  

If you exceed the cap, the ATO may apply additional tax and interest charges.

If you’ve had a total super balance below $500,000 on the previous 30 June, you may be eligible to use unused cap amounts from the past five years under the carry-forward concessional contributions rule.

Understand Division 293 Tax (High-Income Earners)

If your income plus concessional contributions exceed $250,000, you may also be liable for Division 293 tax, which applies an additional 15% tax on some or all of your concessional contributions.This effectively means high-income earners could pay up to 30% tax on their super contributions.

To claim the deduction in your tax return:

• The contribution must be received by your fund before 30 June of that relevant year; and

• You must have received the acknowledgment letter from your fund before you lodge your tax return.

  
  

If you lodge too early (before receiving the acknowledgment), the deduction may be disallowed.

✳️ Example Summary

Step	Action	When
1	Transfer $10,000 into your super fund	Before 30 June
2	Lodge Letter of Intent (NAT 71121)	After contribution is made
3	Wait for acknowledgment letter	Before lodging tax return
4	Claim at Item D12 in tax return	After acknowledgment received

This articles intention is to inform rather than advise and is based on legislation at the time. Each Taxpayer’s circumstances vary so we strongly recommend that you discuss this information with your Tax Agent, Accountant or Bas Agent before implementation. If you take, or do not take action as a result of reading this article, we accept no responsibility for any financial loss incurred. This is general advice only.