Personal Concessional Contribution

From 1 July 2017, you do not have to be self-employed in order to contribute to your SMSF tax-effectively. You can claim a tax deduction on Superannuation contributions. The contributions made to your SMSF are called “concessional contributions” because this will be taxed in your SMSF at the concessional rate of 15%.

An annual cap for concessional contributions (From 1 July 2021, the concessional contributions cap is $27,500.) is applied to your concessional contributions. Please note that if you exceed this cap, a penalty tax will be applied. You should complete a Deduction for Personal Super Contributions (click on the link for more info). To download the form, click below:

Notice of Intent to claim a personal contribution – download

Please complete this form and send a copy to Superannuation Warehouse. This will be used to complete your SMSF tax return.

Personal Deduction

To claim a deduction in a personal capacity for super, you have to complete the form noted above. Remember to keep a copy of this form, also referred to as a S290-170 notice, as proof the concessional contribution was paid to the SMSF. It is crucial that Trustees provide a Notice of Intent to Deduct before they lodge a personal income tax return and earlier than the end of the next income year.

There are 2 recent cases to demonstrate the importance of a Notice of Intent to Deduct. In these cases, the taxpayers are not able to claim a deduction for the contributions. The issue identified for both cases was that the Notice of Intent to Deduct was completed after personal tax returns were lodged. Therefore, make sure paperwork are complete within the required timeframe. Please see below for more information on the cases:

Johnston and Commissioner of Taxation [2011] AATA 20 (20 January 2011) Khanna and Commissioner of Taxation (Taxation) [2022] AATA 33 (14 January 2022)

The ATO published a private ruling regarding deductibility of personal super contributions where the Fund was unable to claim tax deduction for contributions as a written acknowledgement was not provided. Please see this page for more information.

Extra Contributions

You can also contribute an extra $110,000 per year into your SMSF as a non-concessional contribution.

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No Advice

Superannuation Warehouse is an accounting firm and do not provide financial advice. All information provided has been prepared without taking into account any of the Trustees’ objectives, financial situation or needs. Because of that, Trustees are advised to consider their own circumstances before engaging our services.