Personal deductible contributions – a present at tax time
These are after-tax contributions you make directly into your super which you can then claim as a tax deduction on your tax return. Personal contributions can be made at any time in the financial year. This is an alternative to before-tax salary sacrifice contributions, especially if you're self-employed.
You can make these contributions as a one-off, lump sum to your super account, or make regular payments from your bank account or employer. You can make these contributions via BPAY, direct debit, cheque or money order.
See how Mary benefits from making a personal contribution
Mary is 45 years old, has $97,000 in super and earns $77,000 per year. Mary decides to make a personal deductible contribution (PDC) of $3,000 in the 2021/2022 financial year.
Mary’s tax savings
With every contribution Mary makes into her super account, her salary is taxed on the amount remaining after her contribution is deducted. Since Mary earns $77,000 a year and makes a $3,000 PDC into her account, her taxable income for the year is lowered to $74,000 and she gets a personal income tax saving of $1,035.
The positive impact on Mary’s super balance at retirement
By contributing an additional $3,000 this year, Mary will have $5,000 more in her super account at retirement1. If Mary decides to make a PDC in future years, she will benefit from more tax savings and a further boost to her retirement balance.
How can you claim these as a deduction?
After you've made an after-tax contribution into your VicSuper account, you have until before you lodge your tax return and the end of the following financial year to claim your tax deduction. You have to let us know you intend to claim a deduction in your tax return by completing the Notice of intent to claim or vary a deduction for personal super contributions form before lodging your tax return or complete it via MembersOnline under Personal tax deduction claim on the Contribution menu.
You'll then receive an acknowledgement from us which you'll need to use to claim your deduction in your tax return.
How are they taxed? If you notify us of your intent to claim a tax deduction, your taxable income is reduced by the contribution amount. The contribution is then treated as a before-tax contribution, so is taxed at the superannuation rate of 15%.
Know your limits
Know your limits
Before you start making additional contributions, it's vital to review all of the super contributions you make to ensure you stay within the caps and aren't charged additional interest and tax.
How much is the cap?
These contributions fall under the before-tax (concessional) contributions cap. But only if you claim them in your tax return. If you don’t, they fall under the after-tax (non-concessional) contributions cap. Currently, you can add up to $27,500 in before-tax contributions to your super account – all at the low tax rate of 15%. If your adjusted income exceeds $250,000 per year, your contributions are generally taxed at an effective rate of 30%.
You can find out more about contribution caps in our Member Guide.
Make a contribution
Make a contribution
There are lots of ways to make a personal deductible contribution to your account. However, we need to know you intend to claim a deduction for these contributions. Therefore you must complete a Notice of intent to claim or vary a deduction for personal super contribution form online or by post.
Remember - you have until before you lodge your tax return or the end of the following financial year (whichever happens earlier) to claim your tax deduction.
Contributions must be received into your super account by late June each year to be eligible for the current financial year. Please allow sufficient time for your financial institution to process your payments by 30 June.
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