If you’re self-employed and earn less than 10% of your income from an employer, chances are the responsibility of adding to your super falls to you.
The good news is that you can claim a tax deduction for any voluntary super contributions you make.
If you claim a deduction, your voluntary contributions are treated as ‘concessional’ (or before tax) contributions, that is, contributions that you have not paid tax on.
If you do not claim a deduction, your voluntary contributions are treated as ‘non-concessional’ (or after tax) contributions, that is, contributions that you have already paid income tax on.
Different limits and tax treatments apply to concessional and non-concessional contributions.
If you wish to claim a tax deduction on your contributions and plan to start a Media Super Pension, you will need to claim the deduction prior to commencing your pension.
Low income initiatives
If you make concessional contributions and you earn less than $37,000 in the financial year, You may be eligible for the government Low Income Super Contribution. This is a government addition to your super of $10 to $500 paid on deducted contributions of up to $3,330 in a financial year.
If you make contributions and do not claim a deduction, you may be eligible for a government co-contribution.