Contributing to Superannuation

Eligibility to Claim a Tax Deduction

Your employer can claim a tax deduction on any contributions they make on your behalf, including salary sacrifice contributions.

An individual can claim a tax deduction for further personal concessional contributions to superannuation provided they do not exceed the concessional cap limit after any employer contributions have been factored in.

You may be eligible to claim a tax deduction for personal superannuation contributions if you are under 75 years old – including if you are aged 65 to 74 years and meet the work test (having worked at least 40 hours during a consecutive 30-day period during the relevant financial year).

Please note: From 1 July 2019, people aged 65 to 74 with a total superannuation balance below $300,000 will be able to make voluntary contributions for 12 months in the first year after they last met the work test. However, existing annual concessional (and, the carry forward rules) and non-concessional contribution (and, bring forward rules) cap limits will continue to apply to the contributions permitted by the exemption.

On the following page, let’s look at the example of Judy. She earns $60,000 a year in income (split between work and other income sources).

How much tax would she save if she makes a personal contribution to super of $20,000?