Big four firm cautions super members on paperwork slip-ups
Super members planning to make tax deductible contributions have been reminded to avoid simple errors in their paperwork that could cost them their entitlement.
PwC director of private clients Liz Westover said with three months left before the end of the financial year, it’s a good time for super members to start thinking about their personal superannuation contributions and topping up retirement savings.
“If you plan to claim a tax deduction for these contributions, remember, it’s not enough to simply make the contribution and add it to the deductions in your tax return. For those wanting to claim a tax deduction for personal contributions, paperwork is vital,” Ms Westover said.
In order to be eligible to claim a deduction for personal super contributions, individuals must notify their super fund of their intent to claim a deduction.
“They must also be in receipt of an acknowledgement from the super fund that the fund has received that notice,” Ms Westover said.
“Failure to adhere to these requirements can result in a denial of the deduction by the Commissioner of Taxation.”
The timing of the notice, she said, was also important, as the notice must be given to the super fund before the end of the day on which an individual’s personal income tax return is lodged.
“Or if the return is not lodged on time, before the end of the financial year following the year of contribution,” Ms Westover said.
She said these rules apply to anyone wanting to claim a deduction, regardless of whether the contribution is to one of the larger industry or retain funds or to a SMSF.