On your super contributions
If you make after-tax super contributions, you could qualify for a tax deduction when you submit a tax return for the relevant tax year - provided you fulfil certain criteria and follow the steps laid out by the ATO.
An after-tax super contribution includes any payment you make after you receive your take home pay. It does not include super guarantee (employer super payments of at least 9.5% of your salary) or payments made by salary sacrifice - because these payments have already received favourable tax treatment.
You could claim a deduction for the difference between your marginal tax rate and the 15% tax rate which applies to super.
How to make an after-tax contribution
Use BPAY® to make your after-tax contributions to TWUSUPER.
® Registered to BPAY Pty Ltd ABN 69 079 137 518.
How to qualify for a tax deduction
To qualify to apply for the tax deduction, you must be a member of a complying super fund (like TWUSUPER), aged under 75* and:
- make an after-tax contribution (or multiple contributions) to your TWUSUPER account
- notify TWUSUPER in writing of your intention to claim a tax deduction using the ATO form. We have pre-filled the form with Fund details depending on your account type:
How to claim a tax deduction
Once you have received TWUSUPER's written acknowledgement of your intent to claim the deduction, you can lodge your tax return and claim the deduction for your after-tax super contributions.
Once TWUSUPER has accepted your Notice of Intent to Claim a Tax Deduction form, the after-tax (non-concessional) contribution becomes a before-tax (concessional) contribution. This means it will be subject to the concessional contribution cap (of $25,000 a year).
It will also be taxed at the same concessional tax rate as other before tax contributions (such as the Super Guarantee and salary sacrifice). This is 15% for most people.
What you can't claim a deduction for
There are limits on what you can claim as a super tax deduction - excluded items include contributions that you've:
- split with your spouse** (although you could get other benefits for this)
- used to start a super pension (for example through a TransPension account)
- transferred from one fund to another (including overseas funds such as Kiwisaver)
Turned 75 this financial year?
You can't claim a tax deductions for contributions you make more than 28 days after the month you turned 75.
Still under 18 years at the end of the financial year?
In this case, you must have earned income as an employee or business operator in the year you intend to claim the tax deduction. This does not apply to those 18 and over.
The Notice of Intent to Claim a Tax Deduction form will not be valid if:
- you use part or all of the contribution to start a super pension, or
- you've made a full withdrawal or rollover to close your account after the contribution was made.
Also, if you've partially rolled over or withdrawn your super (which included the contribution you made), your notice won't be valid for the entire contribution. This is because you can only deduct a proportion of the contribution that remains in your super account.
* If you're aged between 65 and 74, you must meet a work test.
** The law defines a spouse as another person (whether of the same or different sex) who is legally married to you, or a person who, although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple.