Concessional contributions are made into your super fund before tax, and include contributions you are allowed as an income tax deduction



 after 1 July 2017 - claim entire deduction vs partial deduction

  • During 2017–18 Christie earns $40,000 in assessable income. Christie is eligible to claim a deduction as she is not required to meet the 10% income test + Christie contributes $5,000 to her super fund as a personal contribution. 
  • If she claim a tax deduction of $5,000, 
    • her taxable income $35,000 + her fund would pay 15% tax on the $5,000 (tax on the super deduction is $750), so only $4,250 would be credited her account
    • not entitled to gov super co contribution (not to be confused with LISC)
    • eligible for Low Income Super Tax Offset (LISTO). Please note that the Low Income Super Contribution (LISC) was repealed at 1/7/17. 
      • LISTO - if your taxable income is less than $37,000, you can get a tax offset up to $500 for the personal super you contributed (regardless if you claim it as a deduction)
      • LISC - if your taxable income is less than $37,000, you can get a super contribution from the gov up to $500 for your personal super you contributed
  • If she claim a personal income tax deduction for $4,000 instead of the entire $5,000, this would mean:
    • her taxable income would be $36,000 + her fund would have to pay 15% tax on the $4,000 (tax on super deduction is $600), so the after tax of $3,400 would be credited to her account
    • may be eligible for the gov super co-contribution in respect of the $1,000 that was not claimed as a deduction. see eligibility : QC 17469 Last modified: 28 Nov 2017
    • eligible for LISTO

Forms:

https://www.ato.gov.au/uploadedFiles/Content/SPR/downloads/n71121-11-2014_js33406_w.pdf


Reference: