Tax Deduction for Employee Superannuation Contributions

From 1 July 2017 employees will be eligible to claim a tax deduction for contributions personally made to a superannuation fund. The total of all deductible contributions, including superannuation guarantee, salary sacrificed contributions and personal deductible contributions is capped at $25,000 per annum.

Low Income Superannuation Tax Offset

Eligible taxpayers who earn up to $37,000 a year will get a tax offset, equal to 15% of before tax (employer and salary sacrifice) superannuation contributions, up to $500. The offset will be paid directly to the superannuation fund.

Spouse rebate

A tax rebate of 18% is available to individuals who make an after tax contribution of up to $3,000 for the benefit of a low income earning spouse. From 1 July 2017 the income the receiving spouse can earn is increasing from $10,800 to $37,000 for full eligibility with the phase out limit increasing from $13,800 to $40,000

Superannuation Co-Contribution

A government co-contribution is available to individuals who make an after tax superannuation contribution of up to $1,000. The co-contribution of $0.50 for each dollar contributed up to $500 is available for individuals under 71 with income under $36,021. The level of co-contribution phases out up to an income of $51,021.

Superannuation contribution splitting

Spouses are able to split up to 85% of concessional contributions (superannuation guarantee and salary sacrifice contributions) to their spouse's superannuation fund. The receiving spouse must be under 65 and not retired.

Section 293

From 1 July 2017 individuals with adjusted taxable income of more than $250,000 will be liable for an additional 15% tax on concessional contributions made on their behalf. This income limit is being reduced from its current level of

$300,000.