Yes, but only under specific conditions and only for personal contributions, not employer mandatory contributions. The key rule is that you must lodge a Notice of Intent to Claim a Deduction with your super fund before lodging your tax return. Miss that step and the deduction is gone permanently.
This is one of the most impactful EOFY strategies available to individuals and business owners alike. It works alongside other smart tax planning moves such as reviewing your taxation and accounting position before 30 June to ensure every available deduction is captured.
The eligibility rules changed significantly from 1 July 2017. Prior to that, employees generally could not claim a deduction for personal super contributions. Now, most Australians aged 18 to 74 who make personal (after-tax) contributions to their super fund can claim a deduction, subject to the following conditions.
You can claim a deduction for personal contributions if you earn less than 10% of your total income from employment with a single employer. This means salary earners who only have one employer will generally not qualify. However, if you have multiple income sources, freelance work, rental income, or investment income, you may well be eligible.
If you are self-employed (sole trader, contractor, or business owner), you can typically claim a deduction for 100% of your personal super contributions, up to the concessional contributions cap. This is one of the most powerful super strategies for self-employed people who do not receive employer super contributions.
Age Restrictions – Important
From age 67 onwards, you must meet a work test (at least 40 hours of gainful employment in a 30-consecutive-day period within the financial year) to make voluntary contributions and claim a deduction. From age 75, you can no longer make personal deductible contributions.
Concessional contributions (before-tax contributions, including employer SG contributions and personal deductible contributions) are capped at $30,000 per financial year from FY2024-25 onwards. This includes:
Exceeding the cap means the excess is included in your assessable income and taxed at your marginal rate, plus an excess concessional contributions charge. Always confirm your employer contributions and salary sacrifice amounts before making additional personal contributions. You can verify current ATO thresholds directly on the ATO website’s concessional contributions page.
| Contribution Type | Counts Toward Cap? | Tax in Super | Deductible? |
|---|---|---|---|
| Employer SG contributions | Yes | 15% | No (employer’s deduction) |
| Salary sacrifice contributions | Yes | 15% | Reduces your taxable salary |
| Personal deductible contributions | Yes | 15% | Yes, if notice lodged |
| Non-concessional (after-tax) contributions | No (different cap) | 0% | No |
Make the personal super contribution
Deposit the funds into your super fund from your personal bank account before 30 June of the financial year you want to claim the deduction.
Obtain ATO Form NAT 71121
This is the Notice of Intent to Claim or Vary a Deduction for Personal Super Contributions. Download it from ato.gov.au or obtain it from your super fund. Many funds accept online submission.
Lodge the notice with your super fund
The notice must be lodged before the earlier of: lodging your tax return for that year, or 30 June of the following financial year. Do not lodge your tax return until you have received acknowledgement from your fund.
Receive acknowledgement from your fund
Your fund must acknowledge your notice. Keep this acknowledgement as it is required as evidence if the ATO queries your deduction.
Claim the deduction in your tax return
Include the contribution amount as a deduction in your individual tax return (Item D12, Personal Superannuation Contributions). Your accountant will ensure this is done correctly as part of a thorough taxation and accounting review.
The tax benefit depends on your marginal tax rate and the amount of the contribution. Here is a realistic example for a person earning $105,000 per year:
| Scenario | Details |
|---|---|
| Taxable income (before super deduction) | $105,000 |
| Personal super contribution made | $10,000 |
| Taxable income after claiming deduction | $95,000 |
| Tax saved at 37% marginal rate | ~$3,700 |
| Less: 15% contributions tax in super | -$1,500 |
| Net tax saving | ~$2,200 |
A personal super contribution before 30 June can reduce your taxable income by the full amount contributed, a meaningful saving at higher income levels. Self-managed super fund members can also leverage this strategy as part of a broader SMSF strategy.
Both methods achieve a similar tax outcome, but they work differently in practice. Understanding which approach suits your situation is an important part of a good business advisory strategy before EOFY. Our article on sole trader vs company vs trust also covers how your business structure affects which option is most effective for you.
| Factor | Salary Sacrifice | Personal Deductible Contributions |
|---|---|---|
| When arranged | Before salary is paid | After salary is received |
| Tax effect | Reduces assessable salary | Deduction reduces taxable income |
| Cash flow | Never hits your bank account | You pay, then claim deduction at tax time |
| Flexibility | Must agree with employer | Your own decision, anytime before 30 June |
| Medicare Levy Surcharge | Reduces income for MLS calculation | Reduces income for MLS calculation |
| Best for | Employees wanting regular super top-up | Self-employed, contractors, investors |
Related Article
SMSF Pros and Cons: Is a Self Managed Super Fund Right for You?
If you are considering an SMSF as part of your super strategy, our comprehensive guide covers every angle before you decide.
Why Verus AA?
Super contributions are one of the most impactful tax planning tools available, but the rules around caps, eligibility, and the notice requirements are easy to get wrong. Our Chartered Accountants review your full income picture before EOFY and ensure every available strategy is in place, including super contributions, salary sacrifice, and other pre-30 June actions.
Common questions about superannuation contribution tax deductions in Australia.
Do not miss this EOFY strategy. Talk to our Chartered Accountants about your super contribution position before 30 June and ensure the notice of intent is lodged correctly.
973 Pacific Hwy, Pymble NSW 2073 | Mon-Fri 9am-5pm
