Super Choices for Employees

Super choices for employees

July 2019

If you earn most of your income from employment, you may want to make personal deductible contributions – instead of, or in addition to, salary sacrifice. There are many super choices you can make to improve your retirement funds.

Super options

All eligible individuals are able to claim personal super contributions as a tax deduction, even if their sole source of income is from work performed as an employee.

Like salary sacrifice, personal deductible contributions are generally taxed in the super fund at up to 15%1, instead of your marginal tax rate of up to 47%2. So both options can enable you to boost your super balance and reduce your overall tax.

Also both count, along with any superannuation guarantee (SG) contributions you receive from your employer to the concessional contribution cap. This cap is $25,0003 in 2019/20 and penalties may apply if you exceed it.

Some key differences are that, with personal deductible contributions:

  • you don’t have to enter into an agreement with your employer
  • you can contribute using available capital from a range of sources, such as your after-tax pay, your savings, a windfall or the sale of assets
  • better plan the amount you wish to contribute without exceed the concessional contribution cap
  • you can contribute any time in the financial year, either in regular installments, as a lump sum or both, and
  • you can easily increase or decrease the amount you contribute in line with your income and expenses.

Superannuation can be a forgotten investment. Craig at HQB Financial Solutions encourages all Australians to take an interest and improve understanding of how it works and the Super choices available. Give Craig a call today on (02) 66993649 or contact here and take control of your retirement funds.

Claiming the deduction

To claim a personal super contribution as a tax deduction, there are some very important steps you’ll need to follow. First, you’ll need to submit a valid ‘Notice of Intent’ form with your super fund and receive an acknowledgement back from the fund. You also need to make sure this happens before you complete your tax return, start a pension, or withdraw or rollover the money. Otherwise you may not be eligible to claim a deduction for the full amount you want. Other conditions may also apply. For more information, please visit the ATO website at

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