Deductibility of Personal Contributions

Budget measure

  • The criteria for deductibility of personal contributions will be extended to all individuals from 1 July 2017. See Improving access to concessional contributions on the Budget 2016–17 website fact sheet page.

Our understanding

From 1 July, the eligibility requirements for individuals to claim a tax deduction on personal contributions will be removed which extends this option to those who do not meet the current definition of ‘substantially self-employed’. Personal contributions to defined benefit schemes remain unable to be claimed as a tax deduction due to the complex nature of these schemes.

This measure improves access to superannuation concessions for those who may be self-employed on a part time basis or if their employer does not offer salary sacrifice.