Powered by MOMENTUM MEDIA
subscribe to our newsletter

ATO to contact members about deductions for contributions

ATO
Miranda Brownlee
14 February 2019 — 1 minute read

The ATO plans to contact around 11,000 taxpayers in February about claiming deductions for personal super contributions to ensure they claim correctly.

In an online update, the ATO said that from mid-February it will be issuing emails and letters to individuals who it expects will be claiming deductions for personal super contributions.

“The campaign will reach around 11,000 people who self-prepare their tax returns with emails issuing on 12 February, and letters issuing on 25 February,” it said.

Advertisement
Advertisement

Earlier this year, the ATO reminded professionals about some of the common errors that can arise when clients claim deductions for personal super contributions.

Before lodging the client’s 2018 tax return, the ATO said that practitioners should check that their client is eligible to claim and that they made personal (after tax) super contributions directly to their super fund before 30 June 2018.

In order to be eligible for deductions on contributions made on or after 1 July, the contributions cannot have been made to a Commonwealth public sector superannuation scheme in which the client has a defined benefit interest, a constitutionally protected fund, or a super fund that notified the ATO before the start of the income year that it had elected to treat all member contributions as non-deductible.

The client also needs to meet the age restrictions. Clients aged between 65 and 74 may be eligible to use this strategy if they meet the work test.

Practitioners also need to ensure that their client has sent a notice of intent to claim or vary a deduction for personal super contributions to their super fund and has received an acknowledgement.

It also noted that members can only claim deductions for their after-tax personal super contributions and not from before-tax income such as the superannuation guarantee, salary sacrifice or reportable employer super contributions shown on their payment summary.

Miranda Brownlee

Miranda Brownlee

 

Miranda Brownlee is the deputy editor of SMSF Adviser, which is the leading source of news, strategy and educational content for professionals working in the SMSF sector.

Since joining the team in 2014, Miranda has been responsible for breaking some of the biggest superannuation stories in Australia, and has reported extensively on technical strategy and legislative updates. Miranda has also directed SMSF Adviser's print publication for several years. 

Miranda also has broad business and financial services reporting experience, having written for titles including Investor Daily, ifa and Accountants Daily.

You can email Miranda on: This email address is being protected from spambots. You need JavaScript enabled to view it.

ATO to contact members about deductions for contributions
ato sign
smsfadviser logo

Are you up to date with the legislative changes from 1 July? Contribution cap increases, super guarantees, age increases, SG rate increases. The budget announcement changes. Don’t be caught off guard by your clients’ questions. Prepare for any scenario with the SMSF Foundations course. 21 CPD hours available. Learn more

join the discussion

Latest poll

Do you have clients that are aged 65 or 66 planning to trigger the bring forward rules?

SUBSCRIBE TO THE
SMSF ADVISER BULLETIN

Get the latest news and opinions delivered to your inbox each morning

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.