In order to claim a tax deduction for your personal after-tax contribution it is important that you send us your Notice of intent before you lodge your 2018/19 tax return.
To claim a tax deduction for your personal contributions:
1. You must complete the Notice of intent to claim a tax deduction for personal contributions form
Or post it to:
First State Super
PO Box 1229
Wollongong NSW 2500
3. Once we receive your form, we’ll send you an acknowledgement letter confirming the amount you want to claim. 15% tax will be deducted from your personal super contributions and will be reported in your next member statement.
4. Lodge your tax return. You’ll need to state the amount you want to claim as a tax deduction in the supplementary section of your tax return.
Don’t forget that there are limits to how much tax you can save
The government limits the amount you can contribute to your super each year without paying extra tax. These limits are called contribution caps which are in place for both concessional (before-tax) and non-concessional (after-tax).
There is an annual cap of $25,000 in place for concessional contributions. 2018/19 is the first financial year you can carry forward unused concessional cap amounts and these amounts can be used from 1 July 2019. Unused cap amounts can be carried forward for up to five years., To use an unused cap amount your total superannuation balance must be under $500,000 at the end of the previous financial year.
For example, if you contributed $20,000 in 2018/19, and $20,000 in 2019/20, you’ll have $10,000 in ‘unused’ contributions that you could contribute in 2020/21 in addition to your annual cap of $25,000, providing your total superannuation balance as at 30 June 2020 was under $500,000. You can carry forward any unused amounts for rolling five-year periods.
This cap is inclusive of the 9.5% super guarantee from your employer. It’s also a combined total across all funds you might have, which is important to keep in mind if you’re contributing to more than one super account.
If your contributions exceed the cap, this amount will be considered part of your assessable income and taxed at your marginal tax rate (plus an excess concessional contributions charge).
The Australian Taxation Office will give you the opportunity to apply for a refund of up to 85% of the excess contributions and you’ll also receive a 15% tax offset in your tax return.