Personal Deductible Contributions

By making personal contributions to your super, you may be able to claim a tax deduction to reduce your tax liability.

What’s in it for me?

  •       Pay less tax by reducing your taxable income, while growing your retirement savings quicker.
  •       Retirees, self-employed persons and homemakers can build wealth more effectively.

Who can this strategy work for?

This strategy is most suitable if you:

  •       have a marginal tax rate above 19%
  •       want to reduce tax
  •       are eligible to contribute


Spouse Contributions

What are spouse contributions?

A spouse contribution involves making a contribution to a spouse’s super fund to build their retirement savings.

What are the benefits?

      You may receive a tax offset for contributions made on behalf of a low income earning or non-working spouse.

      Boost the super balance of a spouse who has little or no super and grow your retirement savings as a couple.

      Accumulate wealth since earnings within super may be taxed at a lower rate than investments outside super.

Who can this strategy work for?

      Generally, you can make spouse contributions on behalf of your spouse if either:

  •       your spouse is under 65 years of age
  •       your spouse is between 65 to 69 years of age inclusive and meets a work test
  •       your spouse’s assessable income (plus reportable fringe benefits and reportable employer super contributions) totals less than $13,800.

To claim the tax offset, both you and your spouse must be Australian residents for tax purposes and not be living separately and apart on a permanent basis.


Government Super Co-Contribution

What is the Government co-contribution?

The co-contribution is a payment the Government makes to your superannuation if you are in the low to middle income thresholds and make voluntary after-tax contributions to your super.

Generally, income thresholds are indexed each year and the matching rate is up to $0.50 for every $1 you contribute (up to a maximum of $500). This is a significant incentive for you to contribute to your super.

Who is eligible?

You are eligible for the co-contribution if, in a financial year (1 July to 30 June):

  •       you make personal, after-tax superannuation contributions by 30 June to a complying superannuation fund or retirement savings account (RSA)
  •       your total income is less than $46,920*
  •       you receive at least 10% of your total income from eligible employment or carrying on a business, or a combination of both
  •       you are under 71 years of age at the end of the financial year
  •       you don’t hold a temporary resident visa at any time during the financial year except where a temporary visa holder is also a New Zealand citizen or holder of a subclass 405 (Investor Retirement) or subclass 410 (Retirement) visa
  •       you lodge an income tax return for the relevant financial year.

What is total income?

Total income is defined as assessable income plus reportable fringe benefits and reportable employer superannuation contributions (generally salary sacrifice contributions).


* If you are a self employed individual, allowable business deductions reduce your assessable income when determining whether your total income is less than $46,920 for the purposes of calculating the amount of co-contribution payable.