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Leo111(Master)Master
30 Apr 2021

I recently made a $300 after tax contribution to one of my superannuation funds! I have now decided to close that particular fund and will be requesting a roll over into my main superannuation account. (Yes, not a good idea to have 2 accounts but the one fund offered TPD insurance and the other one did not)

My question is - I understand if I want to claim a Personal Tax Deduction on my tax return, I need to complete a form (Notice of Intent to Claim?) prior to rolling over my balance to another fund which will result in a 15% contributions tax being deducted. Eg. After Tax super contributed was $300. My Superfund will deduct the 15% which will result in $255 rolled over to my main account. I will then be able to deduct $255 on my tax return? Question - Is this correct?

My dilemma is it may be be beneficial to claim as a tax deduction or it may be beneficial to have the Super Co-Contribution for low - middle income earners. I will only be able to determine this come tax time. But I need to decide now before I can roll over to another super fund.

Hopefully what I am trying to say makes sense. Thanks for reading and helping.

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6 replies
1,240 views
6 replies

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Bruce4Tax(Taxicorn)Taxicorn
ATO Certified Response30 Apr 2021

Out of interest.... If I was not doing a roll over into another fund - would I have had to have made this decision now (ie.. personal tax deduction vs Governent Co-Contribution) or is this something that I could determine at the time of lodging my tax return. I have never heard of this Notice of Intent to claim before and honestly a bit confused of why we need to complete.

If rolling over, then no need to decide till taxable income is known.

Notice of Intent is required in order to prove to ATO that you are eligible to claim the deduction.

[Notice -> fund] results in [confirmation letter -> member ]

Claiming on personal tax return requires you to tick a box on tax return to confirm this.

So, you need to have the letter before you can lodge tax return.

https://www.ato.gov.au/Individuals/Super/In-detail/Growing-your-super/Claiming-deductions-for-personal-super-contributions/

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Bruce4Tax(Taxicorn)Taxicorn
30 Apr 2021

My question is - I understand if I want to claim a Personal Tax Deduction on my tax return, I need to complete a form (Notice of Intent to Claim?) prior to rolling over my balance to another fund which will result in a 15% contributions tax being deducted. Eg. After Tax super contributed was $300. My Superfund will deduct the 15% which will result in $255 rolled over to my main account. I will then be able to deduct $255 on my tax return? Question - Is this correct?

No - your tax deduction = $ 300.

Make sure you get your deduction letter from the fund before you rollover the member balance.

My dilemma is it may be be beneficial to claim as a tax deduction or it may be beneficial to have the Super Co-Contribution for low - middle income earners. I will only be able to determine this come tax time.

But I need to decide now before I can roll over to another super fund.

Correct - too late after the rollover.

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Leo111(Master)Master
30 Apr 2021

Hi @Bruce4Tax

Thanks for the quick response and clarifying my understanding.

It is unlikely but if I reached the upper income threshold of $54,837 then I won't be eligible for the governement co-contribution AND I will still be able to claim the tax deduction? (essentially, too late - too bad?) My preference is the government co-contribution but don't want to end with nothing.

Out of interest.... If I was not doing a roll over into another fund - would I have had to have made this decision now (ie.. personal tax deduction vs Governent Co-Contribution) or is this something that I could determine at the time of lodging my tax return. I have never heard of this Notice of Intent to claim before and honestly a bit confused of why we need to complete.

Hopefully I "some" knowledge in what I am doing, and a big kudus to you for your help and understanding my question.

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After tax super contributions - Personal deduction on Tax return or Government Co-Contribution. | ATO Community