Super fund members who plan to claim on personal contributions must ensure they have sent a notice of intent to claim or vary a deduction for personal super contributions and have received an acknowledgement from their super fund.
The Australian Taxation Office has sent an alert to tax professional pointing out some of the problems that occur when super fund members try to claim deductions for personal contributions.
Rules allowing claims for personal deductions were relaxed a couple of years ago and the ATO is concerned that some fund members and their tax agents are still not familiar with them.
In July 2017 restrictions on eligibility for claims on personal super contributions were removed.
If you are under 65 years of age, you can make personal after-tax contributions to your super fund, even if you are not working.
People aged 65 to 74 need to meet a work test to be eligible to make a contribution and claim a tax deduction. You must have worked at least 40 hours within 30 consecutive days in a financial year before a super fund can accept any non-concessional contributions.
Deductions must be paid out of after-tax income to be eligible for a claim. Superannuation guarantee or salary sacrifice contributions are not eligible.
Personal contributions are classified as non-concessional contributions and count towards the non-concessional contribution cap.