Commencing from the 2019 income tax returns, individuals wishing to claim a deduction for personal superannuation contributions will need to obtain a specific declaration from their super fund prior to making the claim in their income tax return.

This comes about due to concern individuals are claiming the deduction but not actually making the contribution into super. The ATO is tightening their resources to ensure more data matching is available around this measure.

In order to claim a tax deduction on personal super contributions, individuals will need to action the following:

  • Make a personal super contribution to your super fund, the amount chosen is up to the individual however it is always best to speak to your Business Advisor to ensure you don’t go over your contribution cap.
  • Lodge an Intent to Claim or Vary a Deduction for personal super contribution form with your super fund of which you fund will acknowledge in writing.
  • Then once the financial year is over and using the letter provided by your super fund, your income tax return can be prepared.

Tax agents will need to ensure care going forward specifically with individuals claiming these deductions and ensuring the correct documentation is provided if it is an industry fund. It is very important with self-managed super funds that the intent to claim form is signed by the Trustee and Member prior to their individual income tax return being lodged.