If you make personal super contributions during the year and intend to claim a tax deduction you need to ensure you notify your super fund in the correct manner or risk losing the tax deduction altogether.
When you make personal super contributions to your super fund, the super provider will typically send you a form at the end of the financial year to see if you would like to claim a deduction for the amount contributed, this form is known as a ‘Notice of intent to claim or vary a deduction for personal super contributions’. The ‘notice of intent’ needs to be provided to your super fund either before your tax return is lodged, or before 30 June of the following financial year whichever is earlier. Once the super fund has received your notice of intent, they will then send you an acknowledgement letter, stating that they are aware you will be claiming a deduction for the contributions. This acknowledgement letter needs to be provided to your accountant when your tax return is prepared so that the deduction can be included in your tax return.
If your super fund doesn’t receive the notice of intent before 30 June of the following financial year, you will lose the ability to claim a tax deduction for the personal contributions you made, which could make a big difference in the outcome of your return. If you include a tax deduction for personal super contributions in your tax return but never notify your super fund, the Australian Taxation Office (ATO) will eventually reverse the deduction from your return, which would result in a tax bill you weren’t expecting.
Example – John earnt $150,000 in the 2020/21 financial year, before 30 June 2021 John made a personal super contribution of $10,000 to his super fund that he intended to claim a tax deduction for. John has his tax return completed and tells his accountant he made a deductible super contribution of $10,000 during the year. John’s tax return is finalised and it results in him receiving a refund of $3,900 due to the deduction for the super contribution. John however never notified his super fund that he was intending to claim a tax deduction for the personal super contribution he made, so 30 June 2022 passes and the ATO now have record of who notified their super fund of their intent to claim a tax deduction for personal super contributions. John is identified as one of these individuals and the ATO subsequently issue him an amended ‘Notice of Assessment’ which excludes the deduction for $10,000, as John already received the refund of $3,900 the ATO have now raised a debt of $3,900 for him.
Disclaimer: The information on this site is of a general nature. It does not consider your specific needs or circumstances, so you should look at your own financial position, objectives and requirements and considering seeking financial advice before making any financial decisions.