In the 2016-17 Budget, the Australian Federal Government announced that from 1 July 2017 all individuals under age 75 will be able to claim an income tax deduction for personal superannuation contributions. Currently only individuals who derive less than 10 per cent of their income from employment sources can claim this tax deduction.
These amounts will then count towards an individual’s concessional contributions cap which is $25,000 from 1 July 2017 and be subject to 15 per cent contributions tax in the fund.
To access the tax deduction, individuals will lodge a notice of their intention to claim the deduction with their superannuation provider. This notice will need to be lodged before you lodge your income tax return, you can choose how much of your personal superannuation contribution you wish to claim a deduction for.