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D12 Personal superannuation contributions 2016

Complete question D12 to claim a personal superannuation contributions deduction.

Last updated 25 May 2016

Did you make personal superannuation contributions during the year to a complying superannuation fund or a retirement savings account (RSA)?

No

Go to question D13 Deduction for project pool 2016, or return to main menu Individual tax return instructions 2016.

Yes

You may be able to claim a deduction. Read below.

Are you eligible to claim a deduction?

You may be able to claim a deduction for personal contributions you made to a complying superannuation fund or RSA in 2015-16 if:

  • you satisfied the age-related conditions
  • you gave a valid notice of intent to your fund or RSA provider, in the approved form, and advised them of the amount you intend to claim as a deduction (you must give this notice on or before the day you lodge your 2016 tax return or 30 June 2017, whichever is earlier)
  • your fund or RSA provider acknowledged your valid notice, and
  • you satisfied the maximum earnings condition, as less than 10% of the sum of your assessable income, plus
    • your reportable employer superannuation contributions (shown at item IT2 in the Income tests section on page 8 of your tax return)
    • your total reportable fringe benefits amounts (shown at item IT1 in the Income tests section on page 8 of your tax return)
     

was attributable to activities that resulted in you being treated as an employee for the purposes of the superannuation guarantee law. For an explanation of these activities, see You need to know.

See also:

Assessable income is the amount you wrote at Total income or loss on page 3 of your tax return unless:

  • you had a distribution from a partnership or trust, income or losses from rent or business (including personal services income), capital gains or capital losses or foreign source income
  • you claimed your share of joint deductions against some jointly shared income
  • you claimed a deductible amount for a foreign pension or annuity at item D11 on your tax return, or
  • you have a deductible farm management deposit amount at item 17 label D.

In any of these cases, phone 13 10 20 for help in working out your assessable income.

You cannot claim a deduction at this item for personal superannuation contributions if:

  • your personal superannuation contributions were not received by your superannuation fund before the end of the income year - contributions received by the superannuation fund after the end of the income year can only be claimed as a deduction in the following income year, even if you took steps (such as posting a cheque, or initiating a direct debit) prior to the end of the year
  • you made the contributions more than 28 days after the end of the month in which you turned 75 years old
  • you were under 18 years old at the end of the income year and you did not receive any income from activities that resulted in you being treated as an employee for the purposes of the superannuation guarantee law or from you carrying on a business (see You need to know for an explanation of when you are an employee or when you are carrying on a business)
  • either of the following applied to you
    • you made a contribution that was attributable, either in whole or in part, to a capital gain that you made and you chose to apply the small business capital gains tax retirement exemption to all or part of that capital gain, and you were under 55 years old just before you made that choice, or
    • the contribution was attributable, either in whole or in part, to a capital gain and a company or trust chose to apply the small business capital gains tax retirement exemption to all or part of that capital gain, and you were under 55 years old just before the contribution was made
     
  • you received 10% or more of your income (including employer super contributions and fringe benefits) from activities that resulted in you being treated as an employee under the superannuation guarantee law
  • you did not provide your fund with a valid notice of intent to claim a deduction in the approved form, or
  • you provided your fund with a valid notice of intent to claim a deduction in the approved form but you have not received an acknowledgment of this notice from your fund (see below).

See also:

You may be entitled to a super co-contribution for your personal contributions that you do not claim as a tax deduction. Do not include any amount at this item for the purpose of asking us for a super co-contribution. We calculate this automatically from information reported by your fund and from other items on your tax return. For more information, see Superannuation contribution caps and government super contributions.

You need to know

Personal superannuation contributions are amounts you have paid to a complying superannuation fund or RSA to provide superannuation benefits for yourself, or for your dependants in the event of your death.

Most superannuation funds are complying superannuation funds. If you are unsure contact your superannuation fund.

The deduction you claim can only reduce your taxable income to nil. It cannot add to or create a loss.

The deduction you claim may also be used in the income tests for eligibility for certain tax offsets and government benefits. See Income tests 2016.

If you are 65 years old or older, you can only make personal contributions if you meet certain conditions. You should check with your superannuation fund or RSA provider.

Generally, you will be treated as an employee for superannuation guarantee purposes if you are paid salary or wages or other remuneration in return for your personal labour or skills. This includes some contractors working under a contract principally for their labour. Activities that result in you being treated as an employee for the purposes of the superannuation guarantee law also include holding an office or appointment under a law of the Commonwealth, state or territory (for example, a public servant) and performing functions or duties as a member of an executive body of a body corporate (for example, a director of a company).

Income attributable to the above activities is included if it is received in the same income year as the activity was performed. This includes:

  • salary or wages
  • allowances and other payments earned by an employee
  • directors fees
  • employment termination payment
  • paid parental leave
  • portable long service leave
  • workers compensation, income protection, sickness or accident insurance; in these cases, the activity may simply be 'remaining employed', even though you may not have actually worked in the year.

See also:

You were carrying on a business if you were engaged in any profession, trade, employment, vocation or calling other than being an employee.

Complete this item only if your superannuation fund or RSA provider has given you an acknowledgment of your valid notice which advised them of the amount you intend to claim as a deduction.

Superannuation contributions splitting

Complying superannuation funds and RSA providers may allow you to split your superannuation contributions with your spouse. However, personal superannuation contributions for which you don't claim an income tax deduction cannot be split to your spouse's superannuation account.

If you intend to lodge a notice of intention to claim a deduction for personal superannuation contributions with your fund, you must do it before you lodge your superannuation contributions splitting application for those contributions.

A superannuation contributions splitting application can only be made to your fund or retirement savings account (RSA) provider:

  • during the income year that follows the end of the income year in which you made the contributions, or
  • during the same income year you made the contributions if your entire benefit is to be rolled over, transferred or cashed before the end of that year.

A spouse can be of any sex.

See also:

Superannuation contribution caps and government super contributions

The amount of your personal superannuation contributions that is allowed as an income tax deduction will count towards your concessional contributions. The amount of your personal contributions that is not allowed as an income tax deduction will count towards your non-concessional contributions. If you exceed your concessional or non-concessional caps you may have to pay more tax.

See also:

You may be entitled to receive a government super co-contribution based on the personal contributions you made for which you did not or could not claim a tax deduction. The co-contribution is a matching government super contribution for low income earners who make a personal super contribution.

You may be entitled to receive a Low Income Super Contribution (LISC) based on your concessional contributions, including your personal super contributions for which you did claim a tax deduction. The LISC is a government super contribution (up to a maximum of $500) for low income earners that is designed to offset the tax paid by super funds on concessional contributions.

Check that you have provided your tax file number to your superannuation fund to ensure you can make a personal contribution and ensure you receive your co-contribution entitlement.

See also:

Completing this item

Step 1

Have you provided, in the approved form, a valid notice of your intention to claim a deduction for personal superannuation contributions to your fund or RSA provider?

Yes

Go to step 2.

No

Send this notice to your fund or RSA provider before you lodge your tax return. You are not entitled to claim a deduction for personal superannuation contributions unless you have given the notice and received an acknowledgment from your fund or RSA provider.

Step 2

Have you received an acknowledgment from your fund or RSA provider that you gave them a valid notice of your intent to claim a deduction for personal superannuation contributions?

Yes

Go to step 3.

No

You are not entitled to a deduction for personal superannuation contributions. You may either wait to lodge your tax return until you receive the acknowledgment, or you may lodge now (without claiming the deduction) and request an amendment once your acknowledgment has been received.

Go to question D13 Deduction for project pool 2016.

Step 3

Were you 18 years old or older on 30 June 2016?

Yes

Go to step 5.

No

Go to step 4.

Step 4

Did you receive income from carrying on a business or from activities that resulted in you being treated as an employee for superannuation guarantee purposes?

Yes

Go to step 7.

No

You are not entitled to a deduction for personal superannuation contributions. Go to question D13 Deduction for project pool 2016.

Step 5

Did you turn 75 years old before 1 June 2015?

Yes

You are not eligible to claim a deduction for personal superannuation contributions for the 2015-16 year. Go to question D13 Deduction for project pool 2016.

No

Go to step 6.

Step 6

Did you turn 75 years old between 1 June 2015 and 31 May 2016 inclusive?

Yes

Add up all the contributions you made between 1 July 2015 and the 28th day of the month following the month in which you turned 75 years old (inclusive) which you are eligible to claim as a tax deduction. This is the amount you write at H item D12 on page 15 of your tax return (supplementary section) if you answer No at step 7. Go to step 7.

No

Go to step 7.

Step 7

Did you earn income from activities which resulted in you being treated as an employee for superannuation guarantee law purposes?

Yes

This income may be reported at item 1 or at other items on your return. However, not all income at item 1 will be included in this test. (For an explanation of what income is included, see You need to know). Go to step 8

No

Go to step 9

Step 8

Add up all your income from the activities identified in step 7.

Is this amount 10% or more than the combined total of your assessable income, reportable employer super contributions and reportable fringe benefit amounts?

Yes

You are not eligible to claim a deduction for personal superannuation contributions for the 2015-16 year. Go to question D13 Deduction for project pool 2016.

No

Go to step 9.

Step 9

Add up all your 2015-16 contributions which you are eligible to claim as a tax deduction, and write the amount at H item D12 on page 15 of your tax return. Go to step 10.

Step 10

If you contributed to only one fund or RSA, print its full name, either its Australian business number (ABN) or tax file number (TFN), and your account number in the boxes at item D12. Remember, your fund or RSA provider must have given you an acknowledgment of your valid notice which advised them of the amount you are claiming as a deduction.

If you contributed to more than one fund or RSA, print 'Additional information' in the Full name of fund box at item D12. In the other boxes, provide details of the fund or RSA provider to which you made the largest contribution and from which you have received an acknowledgment.

You cannot write an amount at H that is higher than the amount your superannuation funds or RSA providers acknowledged.

You may vary your valid notice to reduce the amount stated in relation to your contribution (including to nil). You cannot vary your valid notice to increase the amount stated in relation to your contribution.

You must notify your superannuation fund or RSA provider of any variation, in the approved form, on or before the day you lodge your 2016 tax return or 30 June 2017, whichever is earlier. Once you have provided notification, the amount you write at H for that contribution is limited to the reduced amount.

You may vary your notice after that date if the amount stated does not meet the personal superannuation contributions conditions and we have disallowed an amount of your deduction. For example:

  • the deduction you claimed exceeds your assessable income
  • you have claimed a deduction but you do not satisfy the 10% rule.

You can only vary your notice after that date by the amount of the deduction that does not meet the conditions and that we disallowed.

Schedules of additional information

If you are claiming a deduction at this item you may need to provide one or both of the following schedules of additional information.

If you contributed to more than one fund or RSA, you must provide additional information. If lodging on paper, on a separate sheet of paper, print Schedule of additional information - Item D12, your name, address and tax file number.

For each superannuation fund or RSA provider from which you have received an acknowledgment of your notice of intent to claim the deduction, print the full name of that fund or RSA provider, the fund ABN or TFN of that fund or RSA provider, your account number and the amount that you are claiming as a deduction.

If lodging your return using myTax, for more than one fund or RSA click on ‘Add’ and add fund names, ABN or TFN and amounts for each fund.

You must complete an additional information schedule if you received:

  • workers compensation or a payment under an income protection, sickness or accident insurance policy which you entered at items 1 to 3
  • paid parental leave or portable long service leave payments entered at item 1
  • employment termination payments, received in the income year, that relates to a termination in an earlier income year which you entered at item 4
  • rental income which you entered at item 21.

On the schedule, you will need to write the following where applicable:

  • item number relating to the schedule (item D12)
  • your name, address and tax file number
  • an explanation of the circumstances under which you received the specific types of income listed above, including
    • ABN of each insurer
    • name of the person or the entity that holds the insurance policy
    • type of policy (for example, 'income protection insurance policy')
    • amount received
    • amount of tax withheld
    • the period the payment relates to
    • your employment status (for example: employed, paid leave, unpaid leave, ceased employment in the relevant industry)
    • the date your employment ceased
    • whether you own your rental property solely or jointly (if you have included rental income at item 21)
     

that you completed this schedule last year and your deduction claim was allowed. Print X in the Yes box at Taxpayer's declaration question 2 on page 10 of your tax return. Attach your schedule to page 3 of your tax return.

If you need more information, phone 13 10 20.

Check that you have...

  • kept your notice of intent to claim a deduction and the acknowledgment of your notice from your superannuation fund or RSA provider, as we may ask to see them
  • attached to page 3 of your tax return your Schedule of additional information - Item D12, if you need to send us one.

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