Money Doesn’t Come Without Guidance ...
The Australian Government in the 2016-17 Federal Budget announced that from July 2017 individuals aged under 75 years old will be eligible to claim an income tax deduction for personal superannuation contributions. These amounts will be counted as concessional contributions cap from where there will be 15 per cent contribution tax.
Presently, this tax deduction can be claimed by individuals who obtain less than 10 per cent of their income from their employer. To claim the deduction with the superannuation provider for accessing this deduction they need to lodge a notice of their intention. Typically, before they lodge their income tax return, they need to lodge this notice. To claim the deduction, they can choose an amount of their personal superannuation contribution.
Individuals will not be eligible to claim a deduction for contributions to untaxed and defined benefit superannuation funds which are also known as prescribed funds. They may choose to make a personal contribution to another superannuation fund if they wish to claim a deduction on prescribed fund. The Government, on 15 September 2016, declared that it will retain the work test for individuals aged from 65 to 74 years old.