Personal Deductible Contributions — How to Claim a Tax Deduction on Your Super Before 30 June

Most people assume superannuation contributions are either made by their employer or set up through salary sacrifice. But there’s a third option many Australians overlook — and it can deliver a meaningful tax saving before 30 June if you act in time.

What is a personal deductible contribution?

A personal deductible contribution is money you transfer directly from your own bank account into your super fund — not through your employer, not through salary sacrifice. You then claim it as a tax deduction in your personal return. The contribution is taxed inside the fund at 15% rather than at your marginal tax rate. For someone on a 34.5% marginal rate (including Medicare levy), that’s a saving of 19.5 cents in every dollar contributed. At the top marginal rate of 47%, the saving is 32 cents per dollar.

The Notice of Intent — a step most people miss

Here’s where many people come unstuck. It’s not enough to simply make the contribution. To claim the deduction, you must lodge a valid Notice of Intent to Claim a Deduction with your super fund — and you must do this before you lodge your tax return. Your fund must also acknowledge receipt before the deduction can be claimed. If you lodge your return first and forget the notice, you generally lose the right to claim. That’s a significant and entirely avoidable mistake. Some funds let you lodge the notice online; others require a paper form — check with your fund well before 30 June.

The 30 June deadline and the concessional cap

The contribution must be received by your super fund before 30 June for it to count in the 2025–26 financial year. Electronic transfers usually clear within one to two business days, but don’t leave it to the last moment — some funds have cut-off times, and a transfer that clears on 1 July belongs to the following year. The annual concessional contributions cap for 2025–26 is $30,000. This cap covers all concessional contributions: employer super guarantee payments, salary sacrifice, and personal deductible contributions combined. Check what your employer has already contributed before topping up, to avoid accidentally exceeding the cap.

Who benefits most?

Personal deductible contributions work particularly well for the self-employed, who don’t receive compulsory employer super and may be behind on retirement savings. They also suit employees with spare cash at year-end or those wanting to reduce taxable income below a particular threshold. If you haven’t used your full concessional cap in recent years and your total super balance was below $500,000 on 30 June last year, you may also be able to access carry-forward contributions to make additional catch-up payments above the standard cap. The 30 June deadline is real and unforgiving — the money must be inside your fund by the end of the financial year, so start the process now.

If you’d like to know whether a personal deductible contribution makes sense for your situation this year — including how much you can contribute within the cap — please contact us before 30 June. We can run the numbers and make sure the right steps are taken in the right order.