Making smart superannuation contributions can grow your retirement savings while reducing the tax you pay today. Concessional (before‑tax) contributions are generally taxed at 15% inside your fund—often lower than many people’s marginal income tax rate—so directing more of your pre‑tax income to super can be tax‑effective.
Claim a Tax Deduction
You may claim a tax deduction for personal super contributions (made from after‑tax money) by lodging a valid Notice of Intent to claim or vary a deduction with your super fund and receiving their acknowledgement before you lodge your tax return or by the end of the next income year—whichever occurs first. The amount you claim becomes a concessional contribution and counts towards your concessional cap. Ensure you meet age‑related eligibility conditions.
Quick checks
- Keep the fund’s written acknowledgement for your records.
- Confirm you’re still a member and haven’t started a pension or withdrawn benefits based on those contributions.
Check Before You Contribute
Before adding extra, confirm:
- Your employer’s Super Guarantee and any salary‑sacrifice amounts already paid. All concessional contributions across all funds aggregate towards your cap in the year the fund receives them.
- Whether you have carry‑forward unused concessional cap amounts (available for up to five years if your total super balance was under AUD 500,000 at the previous 30 June).
- Timing matters: June payments may be allocated in July—contributions count in the year received by the fund.
What Are Concessional Contributions?
Concessional contributions include:
- Employer contributions (including salary sacrifice).
- Personal contributions you claim as a tax deduction.
They’re taxed at 15% in the fund (additional tax may apply for high‑income earners). If you exceed the cap, the excess is added to your assessable income and taxed at your marginal rate, with a 15% tax offset to reflect fund tax already paid. You may elect to release up to 85% of the excess to help pay the additional tax.
Know Your Limits
From 1 July 2024, the general concessional contributions cap is AUD 30,000 per year for all ages (was AUD 27,500 up to 30 June 2024). Track contributions across all funds to avoid excess‑contributions assessments.
Practical tips
- Monitor contributions via ATO online services.
- Consider carry‑forward rules if eligible to increase your cap in a later year.
Ready to Optimise Your Super—Properly?
The rules are detailed, and the right strategy depends on your circumstances. To ensure correct lodgements, valid notices, and the proper application of Australian taxation law, engage a qualified accountant. We’ll help you boost your super—and legitimately cut your tax—while staying aligned with current ATO guidance.