You can only claim a deduction for contributions that are made from concessional contributions.
Contributions that are made into your SMSF can be categorised into 2 types:
- Concessional contributions (before-tax contributions) which can include tax-deductible super contributions, where an individual can claim a deduction
- Non-concessional contributions (after-tax contributions)
Who can claim tax deductions on super contributions
- If you are self-employed or you are not employed, you are eligible to claim a tax deduction for your super contributions, which means these contributions will be treated as concessional contributions in the SMSF.
- For those who are under the age of 18, they can also claim a tax deduction for their contributions to their SMSF, however, this only works when the source of income comes from gainful employment.
- An employee cannot claim a tax deduction for their contributions into an SMSF. The same tax benefit can be achieved by making a salary sacrifice contribution into an SMSF. After tax money added to the SMSF is regarded non-concessional contributions.
To see what you can contribute into your SMSF, please see our contribution page.
Trackback from your site.