Prior to the end of the financial year, there is an opportunity to claim a significant tax deduction for contributions to taxpayers personal superannuation.
To ensure that the contributions are deductible, what do we need to consider?
Notice of intention to claim a tax deduction
To qualify and claim the deduction, a notice of intention must be received and accepted by the superannuation fund prior to the lodgement of the member's income tax return or 30 June of the year following, whichever occurs first.
In some circumstances it may be necessary to lodge a notice of intention earlier. If you have a member planning to rollover or withdraw their benefits or seeking to commence a pension, lodgement and acceptance of the notice must occur before these events take place.
Timing
In order for a contribution to be allocated in the current financial year payment must be received by the superannuation fund. This is important for ensuring deductibility and the allocation towards a members contribution cap in this financial year.
CAUTION: 30 June 2018 falls on a Saturday! The timing of contributions is therefore crucial to ensure that they are received by the member's superannuation fund by no later than 29 June 2018.
Some superannuation funds have a cut off date just prior to the end of financial year to ensure that contributions received are processed and allocated in the current year. Please check with the relevant superannuation fund.