Eligibility to Claim a Tax Deduction

Your employer can claim a tax deduction on any concessional contributions they make on your behalf, which includes the superannuation guarantee contribution and any salary sacrifice contributions.

An individual can also claim a tax deduction for personal concessional contributions they make to superannuation provided the amount does not exceed the total concessional cap limit of $30,000 (2024/25) after any employer contributions have been factored in. 

You may be eligible to claim a tax deduction for personal superannuation contributions if you are under 67 years old. A tax deduction may also be made for those aged 67-75* if they meet the work test (i.e. having worked at least 40 hours during a consecutive 30-day period during the relevant financial year). 

*For eligibility to a tax deduction, the contribution must be before the 28th day of the month following the month in which a member turns 75.

On the following page, let’s look at the example of Judy. She earns $60,000 a year in income (split between work and other income sources).

How much tax would she save if she makes a personal concessional contribution to super of $20,000?