Tax deductions for personal contributions

If you make a personal super contribution into your super account, you may be able to claim a tax deduction. This could reduce your net taxable income and therefore the amount of tax you need to pay.

How to claim a deduction

Step 1: Making a personal super contribution

You may make a personal contribution to your TelstraSuper accumulation account at any time. You may claim a tax deduction for the current financial year if you make the contribution before 30 June.

Contributions must be received by TelstraSuper on or before 30 June of the financial year in which you wish to claim a deduction. Any contributions received after 30 June may be claimed in the next financial year.  Allow for a few business days for the contributions to be processed into your account. 

There are limits to how much you may contribute (including contributions by others on your behalf). The personal contributions that you claim as a tax deduction will count toward your concessional contributions cap (generally $27,500 subject to some variations). You should consider what impact this may have before you make the contribution. More information on contribution limits

Get your personal BPay code

Step 2: Notify us of your intention to claim a tax deduction

If you make a personal contribution by cheque, you can notify us that you intend to claim a deduction by completing the Member & Spouse Contribution form

If you make a  personal contribution via BPay and wish to claim a tax deduction, you will need to complete the Notice of Intent to Claim a Tax Deduction form

You can complete this form once at the end of the financial year for multiple voluntary contributions and claim a tax deduction for all of your contributions for that financial year.

You must give a notice of intent to claim or vary a deduction to TelstraSuper by the earlier of:

  • the day you lodge your tax return for the year in which you made the contributions; or
  • the end of the income year following the one in which you made the contributions.

Step 3: Confirmation

Once we receive your form, we will write to you confirming we have received a valid notice from you. You must receive the acknowledgement from us before you claim the deduction on your tax return.

Note: Personal super contributions that you claim as a tax deduction are included in TelstraSuper’s assessable income and taxed at the rate of 15%*. We will reduce your accumulation account by this amount.

Step 4: Lodge your tax return

Include the amount you have contributed and wish to claim as a tax deduction in the appropriate section of your tax return.

Note: If you have previously notified us that you intend to claim a tax deduction and want to vary the claim amount, you will need to complete a Notice of intent to claim or vary a deduction for personal super contributions form. This form is available on the ATO website.

Claiming a deduction on all of your personal contributions may impact your eligibility for a Government super co-contribution.

How it could reduce your tax

Claiming your personal contributions as a tax deduction may reduce your taxable income and therefore reduce the amount of tax you need to pay. 

Case study – Illustration only

Sarah earns $80,000 a year. Her employer makes super guarantee contributions into her super account of $8,800 a year, which means Sarah could contribute up to $18,700 a year before reaching the concessional contributions cap of $27,500. She decides to make a $10,000 personal contribution to TelstraSuper.

After $1,500 (15%) of tax is paid by the fund, Sarah is left with a net addition to her accumulation account of $8,500.

Sarah then claims a tax deduction of $10,000 in her tax return, reducing her taxable income to $70,000 for the year (ignoring any other income and deductions). As her marginal tax rate is 34.5% (including Medicare levy), she pays $3,450 less in her personal tax. Keeping in mind the $1,500 tax paid by the fund, the net tax benefit is $1,950.

What you cannot claim a tax deduction for

You cannot claim a deduction for certain contributions including the following:

  • super you transfer from one fund to another (a rolled over super benefit), including an overseas super fund
  • contributions paid by your employer from your pre-tax income (including compulsory super guarantee and salary sacrifice amounts)
  • contributions rolled over to an income stream
  • eligible downsizer contributions
  • First Home Super Saver amounts that you have re-contributed to your super fund 
  • certain funds (eg a Commonwealth public sector super scheme with a defined benefit and untaxed funds)
  • if you are under 18 or 75 or older you cannot claim a deduction for contributions. Those aged 67 to 74 (including the period up to 28 days after the end of the month in which they reach age 75) will still need to meet the work test to be eligible to claim a tax deduction for their contribution.
  • COVID-19 early release super amount re-contributions

The full list of exemptions and conditions is available at the ATO website.

Things to consider

When making a personal deductible contribution into your super account, please ensure you have received confirmation from us that we have received your Notice of intent to claim a tax deduction. Do this before the following:

  • lodging your tax return for the year in which you made the contribution.
  • making a full or partial withdrawal from your accumulation account
  • starting an income stream, and
  • rolling funds over to another superannuation fund (either full or partial).

Have questions?

If you have any questions about making a personal contribution you can contact us on 1300 033 166. TelstraSuper Financial Planning Advisers can give assistance over the phone regarding your contributions at no additional cost.  You can request a call from them using the online form

* If your taxable income is higher than $250,000 a year, you’ll pay 30% tax on your pre-tax contributions.  If your income is less than $250,000 a year but when you add in pre- tax contributions it’s above $250,000, the 30% tax rate will apply to that part of your pre -tax contributions that are over $250,000. For example, if your income is $230,000 and your pre-tax contributions are $25,000, the 30% tax rate only applies on the $5,000.

Any general advice on this website has been prepared without taking into account your objectives, financial situation or needs. Before you act on any general advice on this website, you should consider whether it is appropriate to your individual circumstances. You may wish to consult an Adviser before you make any decisions relating to your financial affairs. To speak with an Adviser from TelstraSuper Financial Planning call 1300 033 166.