If you are self-employed or substantially self-employed, you can make contributions to your super and claim a full tax deduction. Tax deductions for the self-employed are only available for contributions paid to a complying fund, such as Media Super, or a retirement savings account.
Do I qualify as substantially self-employed?
To be eligible for a self-employed tax deduction you must earn less than 10% of your income – including assessable income, reportable fringe benefits and reportable employer superannuation contributions – from an employer. Other eligibility conditions apply.
How much can I claim?
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.
How to claim a tax deduction
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 your tax return for the year the contributions were made
- the end of the financial year after the financial year in which you made the contributions, and
- you formally request a withdrawal benefit from the Fund (if applicable).
Please use the Deduction for personal super contributions form to notify Media Super of the amount you will claim as a deduction. 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 acknowledgment of the amount from Media Super.
If you operate a company it is the company that claims the full deduction, so do not use the form referred to above. Super contributions made by the company are treated as employer contributions.
- In most cases, your personal super contributions will 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 Deduction for personal super contributions 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.
- 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.