Since 2017, employees have been able to claim superannuation as a tax deduction in their Income Tax Return. The excitement has created a flood of claims in the individuals Income tax return to the extent that 351,000 deduction claims where made my taxpayers in the 2018 tax year. That was an increase of 60% over the previous year for these types of tax deductions. For 2019 individuals had claimed a deduction for personal contributions at an increase of 43% over the previous tax year.
Greater tax deductions always amount to greater scrutiny by the ATO.
So, you need to get it right for your superannuation deduction claim to be valid. Be vigilant and be careful. You need to do the following:
The taxpayer, that’s you, must provide a valid written notice, called a “Deduction Notice” in the APPROVED form “Notice of Intent to claim of vary a deduction for personal super contributions” to the trustee (your Super Fund), advising them of the amount of personal superannuation contributions made during the year for which you intend to claim a tax deduction.
This form MUST be provided to your super fund (trustee) by the time you lodge your income tax return or if you haven’t lodged yet by the 30th June in the year you should have done your income tax return.
So, if you are undertaking these superannuation contributions and you receive correspondence from your Super Fund, READ IT, and don’t throw it out or leave it on the desk with all your other paperwork.
Then head off to GoTax.com.au and get the deduction on your Income Tax Return.
Stay informed and Subscribe
Don't miss out and be the first to know about the latest news in Taxation
You have successfully subscribed to our Blog - happy reading!