How to get more from your 2024 tax return with super contributions

If you’re looking at what deductions you might be able to claim this tax time, the good news is you may be able to add after-tax super contributions to your tax-deductions list.

Here are answers to some commonly asked questions about tax-deductible super contributions, so you can hopefully increase the amount of money you get back this tax time.

If you’ve missed out this year, you could also use this as a guide to how to claim next year.

You can generally claim a tax deduction on voluntary contributions you make using after-tax dollars. This money may come out of your take-home pay, savings, something you’ve sold (like a house or car), or an inheritance.

You can’t claim compulsory contributions an employer might pay you under the Super Guarantee, nor contributions you might make as part of a salary sacrifice arrangement with an employer.

Tax-deductible contributions may be particularly beneficial if you’re self-employed and don’t have an employer making before-tax contributions on your behalf. 

Contributions that you claim a tax-deduction for are generally taxed at 15% within your super fund (the same treatment that applies to contributions made by your employer).

• Boost what you have in super, which could mean more money for your retirement
• Claim a tax deduction, which may mean you pay less in tax 
• Further tax advantages might exist within the super system, including those on investment earnings.

To claim this tax time, you need to do the following things:

1. Have made an after-tax contribution to your super either as a one-off or regular payment in 2023-24 financial year
2. Lodge a valid notice of intent form with your super fund before you lodge your tax return – or before the end of 2024-25 financial year (if that’s earlier)
3. Receive an acknowledgement from your fund in writing
4. Finalise your tax return using the contribution amount included on your notice of intent.

For a full summary of the rules relating to claiming tax deductions for personal super contributions please see the ATO website.

There are concessional and non-concessional contributions and different caps apply to each.

The cap on concessional contributions, which tax-deductible contributions are one of, is $27,500 for 2023-24 financial year.

However, you may be able to use the ‘carry forward rule’ to make a larger concessional contribution. The carry forward rule allows you to use any unused concessional cap amounts over the previous 5 financial years. To be eligible, your total super balance must be below $500,000 on 30 June of the previous financial year. This can be beneficial if you have higher taxable income in a particular financial year. 

Other concessional contributions include compulsory contributions employers are required to pay, and salary sacrifice contributions, which is an arrangement you might set up with your employer.

If you exceed contribution caps, additional tax and penalties may apply.

If you’re aged 67 to 74 and you want to claim a tax deduction on any after-tax super contributions you’ve made, you’ll need to meet the work test, or work test exemption.

Under work test requirements, you must be gainfully employed for at least 40 hours over 30 consecutive days in the financial year the contributions are made. 

This is an annual test, which means you will need to meet the work test or work test exemption in each financial year that you wish to claim a tax deduction on after-tax super contributions.

To be exempt from the work test, you need to have:

• met the work test in the financial year before you made the contribution
• a total super balance below $300,000 at the end of the previous financial year
• not used the work test exemption in a previous financial year.

If you have any further questions about claiming tax deductions on after-tax super contributions, visit the ATO, speak to your adviser, or use our find an adviser service to locate one near you.