Tax deductions

If you are self-employed or substantially self-employed, you can make contributions to your super and claim a full tax deduction.

To be considered substantially self-employed you must earn less than 10% of your income from an employer. Income includes assessable income and reportable fringe benefits.

As of 1 July 2009, salary sacrifice contributions are included as income in income tests used to determine whether you qualify as substantially self-employed.

While you can claim a tax deduction for all your super contributions in your tax return, the ATO will apply additional tax if your super contributions exceed the relevant concessional and non-concessional contributions caps.

You can only use deductions for your super contributions to reduce your taxable income to nil - you cannot add to, or create a loss for, your business through contributing.

For more information about contributions caps, see Tax on contributions.

If you have made super contributions into your Media Super account and wish to claim a tax deduction, you will need to notify us before the earliest of the dates when:

• you lodge lodge your tax return for the year the contributions were made (provided it is lodged before the end of the next financial year);
• the financial year ends, and
• you formally request a withdrawal benefit from Media Super (if applicable).

You will need to request an ATO Section 290-170 form to be sent to you. This form details the amount you have paid in super contributions during the year. To claim a tax deduction, you must complete the form, return it to Media Super and receive acknowledgement of the amount from Media Super.

If you operate a company, it is the company that claims full deductibility, so no Section 290-170 form applies. Super contributions made by the company are treated as employer contributions.

• In most cases, your personal super contributions should not be taxed if you do not notify Media Super that you intend to claim a deduction. They will be treated as voluntary contributions for tax purposes.
• The ATO Section 290-170 form enables you to notify Media Super of the amount you will claim as a deduction. We then provide you with an acknowledgement as proof of your notification.
• The ATO may require proof that you have notified us of your intention to claim a deduction, before it allows the deduction.
• Super contributions tax will be calculated on the amount that you are claiming as a tax deduction. The tax will be deducted from your Media Super account and sent to the ATO.