Personal super contributions¶

A personal contribution is money a person adds to their own super from their own after-tax money — for example, by transferring money from their bank account to their super fund. This is different from employer contributions and salary sacrifice, which come out of pay before tax.

Personal contributions can go one of two ways for tax. This lesson explains both, plainly.

In one line

Personal contributions are after-tax money you add to super. You may claim a tax deduction for some by lodging a notice of intent — otherwise they are non-concessional.

Why this matters¶

Personal contributions are a way for anyone — including people who are self-employed or who want to top up their super — to add to their retirement savings. The tax outcome depends on whether a deduction is claimed, and claiming a deduction has a required step. Knowing the two paths helps a person understand what will happen at tax time.

What you will learn¶

What a personal super contribution is
The two paths: non-concessional, or concessional if you claim a deduction
That a notice of intent is needed to claim a deduction

Understanding the concept¶

A personal contribution is money paid into super from money that has already been taxed — after-tax money. On its own, a personal contribution is a non-concessional contribution. The ATO uses non-concessional for contributions made from after-tax money, where no deduction is claimed. Non-concessional contributions count towards the non-concessional contributions cap, a separate yearly limit from the concessional cap.

There is a second path. A person may be able to claim a tax deduction for some or all of their personal contributions. When a deduction is claimed, those contributions become concessional contributions instead, and count towards the concessional cap — the same cap as employer and salary sacrifice contributions.

To claim a deduction, the ATO requires a step called a notice of intent. This is a form the person gives to their super fund, telling the fund how much of their personal contributions they intend to claim as a deduction. The fund must acknowledge it. The ATO sets time limits for lodging the notice, so it should not be left too late. Only after a valid notice of intent is given (and acknowledged) can the deduction be claimed in the tax return. Any amount not claimed stays non-concessional.

See the caps lesson for how both caps work, and follow the notice-of-intent step through the ATO or your super fund when you intend to claim a deduction.

For accountants & bookkeepers

Eligibility, the approved-form notice of intent, and the timing limits all come from the ATO. The notice must be given to the fund on or before the earlier of the day the member lodges their return for the relevant year, or the end of the following income year, and the fund must acknowledge it before a deduction is valid. A valid notice cannot be revoked or withdrawn, but it can be varied down (even to nil). Amounts not claimed as a deduction remain non-concessional and count towards the non-concessional cap.

Example¶

Mia has some savings and decides to add to her super. She transfers an amount from her bank account to her super fund. This is a personal contribution, made from her after-tax money.

If Mia does nothing further, the amount is a non-concessional contribution and counts towards her non-concessional cap. But Mia wants to claim a tax deduction for it. So she gives her super fund a notice of intent, stating how much she intends to claim, and waits for the fund to acknowledge it. Once that is done, that amount becomes a concessional contribution — counting towards her concessional cap — and she can claim the deduction in her tax return.

Common mistakes¶

Assuming every personal contribution is automatically tax-deductible — it is not; you must lodge a valid notice of intent to make it concessional.
Lodging the notice of intent too late, or after certain fund events — the ATO sets the time limits.
Forgetting that a claimed deduction moves the amount from the non-concessional cap to the concessional cap.

How this works in myaccountant¶

In the app — myaccountant records payroll super (employer and salary sacrifice contributions) and reports them. Personal contributions you make from your own money, and the notice-of-intent step to claim a deduction, are handled with your super fund and the ATO, not inside a pay run.

Key points¶

Personal contributions are after-tax money you add to your own super.
With no deduction claimed, they are non-concessional and count towards the non-concessional cap.
Claiming a deduction makes them concessional, counting towards the concessional cap.
A notice of intent to your fund is required before you can claim a deduction.
The ATO sets the eligibility rules and time limits for the notice.

Learn next¶

General information only — not tax, super or financial advice.

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