News

Superannuation

Super contributions paperwork needs attention

Personal contributions

A technical manager has warned all required documents should be provided if people wish to claim a tax deduction for personal superannuation contributions.

Individuals wanting to claim a tax deduction for personal superannuation contributions must make sure they provide all of the necessary associated paperwork on time, a technical manager has said.

“If you are making personal deductible super contributions, paperwork is very important. That paperwork is referred to as notice of intent and we see many clients who unfortunately miss out on a tax deduction by not providing a notice of intent within the right time frame,” Challenger technical services manager Rahul Singh told participants in the latest Accurium TechHub webinar.

Singh noted this is more of a problem for Australian Prudential Regulation Authority-regulated funds, but emphasised the same time frame applies to all superannuation funds for personal deductible contributions.

“What are the time frames? If you want to claim a tax deduction on your super contribution, you need to provide the notice of intent before lodging the tax return for the income year in question,” he noted.

“So if I made a contribution in the 2019/20 year, and I wanted to claim it as a tax deduction, I need to provide a notice of intent by the [time of] lodging my tax return for the 2019/20 year or if I haven’t lodged my return for the 2019/20 year, by 30 June 2021 [whichever is earlier].”

He said individuals must also take into account any movements of benefits from the fund to which the personal deductible contribution has been made as they will have an effect on the documentation time frame.

“So if I commenced a pension, I must have given a notice of intent before I started that pension. Or if I have lump sum withdrawals or rollovers from the original fund, then I’ve got to give that notice of intent before I moved those monies out.”

Copyright © SMS Magazine 2020

ABN 43 564 725 109

Benchmark Media

Site design Red Cloud Digital