Address:
3/374 Pennant Hills Road, Pennant Hills NSW 2120
Call Us Today:
(02) 9980 5892

ATO Is Reminding Individuals To Lodge Their Notice Of Intent If Claiming Tax On Their Super

You may be able to claim a tax deduction for any personal super contributions you may have made to your fund out on your next income tax return. But to do so, you will need to ensure that you have lodged a notice of intent with your superannuation fund prior to claiming and by a certain timeframe.

To claim a tax deduction for personal super contributions, you must send your superannuation fund your completed Notice of intent to claim a tax deduction for personal super contributions form before you withdraw your super benefit, transfer any part of your account to a retirement income account, split any of your super with your spouse or close your account.

You must give your superannuation fund your notice (or variation) by whichever of the following dates comes first:

  • The day you lodge your income tax return for the income year in which the contribution was made
  • The end of the income year following the income year in which the contribution was made

You need to sign a declaration that this has been provided to the fund by the provided date, as they may not know exactly when those dates would have occurred. They will then need to provide you with an acknowledgement.

A valid notice of intent cannot be revoked or withdrawn, but you can vary the notice to reduce your claim to an amount of your specification (including to zero!). This needs to be done by the dates set out before as well.

People eligible to claim a deduction for personal contributions include people who get their income from

  • salary and wages
  • a personal business (for example, people who are self-employed contractors, or freelancers)
  • investments (including interest, dividends, rent and capital gains)
  • government pensions or allowances
  • super
  • partnership or trust distributions
  • a foreign source.

The personal super contributions that you claim as a deduction will count towards your concessional contributions cap. You need to be careful not to exceed this cap, as this could result in paying more tax and having the excess count towards your non-concessional contributions cap.

For further assistance with your personal super contributions, you should consult with a trusted advisor.

If you’re someone who often finds it difficult to make large lump sum payments for goods or services, you may want to consider looking into “Buy Now Pay Later” services.

Buy now pay later essentially means that, rather than paying in a full lump sum payment for a product or services rendered, there may be an option to pay through instalments of a certain amount over a set period to make the sum of the full amount in total. This method should allow you to pay in full for the product or service without overly straining your finances – you pay back what you can, as agreed upon when you begin the buy now pay later service.

Some popular buy now pay later services include Afterpay, Zip Pay, Brightepay, and some credit card networks such as  Mastercard and Visa, can offer buy now pay later arrangements.

Though it can be a convenient, immediate solution, it may be challenging to juggle the necessary repayments with other financial commitments. It’s not always the most appropriate method for people, and you should bear in mind your situation and ability in paying back the amounts. 

Before you sign up, keep in mind: 

  • It becomes easier to overspend with buy now pay later services, so know your limits on what you can and can’t afford.
  • You will be charged fees and costs to use the service, which can add up to a princely sum in and of itself.
  • Keeping track of your payments can be tricky if you’ve signed up for multiple services.
  • It could affect your loan applications for a car or mortgage as lenders consider buy now pay later spending just as much as your credit score.
  • Late repayments can appear on your credit report, which affects your ability to borrow money in the future.
  • Layby can be a cheaper alternative to buy now pay later, with no account-keeping or late fees to consider

If you are someone who could make use of BNPL services, you may wish to:

  • Ensure that when using the BNPL service, you stick to a set limit on what you spend so that you can comfortably pay it back later. 
  • Aim only to have one BNPL account at a time to manage payments through, rather than confuse yourself with multiple payments across different providers.
  • Always budget for bills, loan payments and BNPL payments, and 
  • Rather than use your credit card for payments to your BNPL account, consider linking to your debit account instead.

If you would like assistance in planning your financial future, help in managing your budget or some friendly advice, see us for a chat about what we can do for you.

Testimonial

What our Client Say

John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier

David and Alison Parker

I have been consulting J L Noller and Co. (more specifically Jane) for six years and during this time I have found her to be professional, efficient and easy to discuss all accounting and taxation matters with. Her office team are all polite and friendly also.

David and Alison Parker

Business Owner

Carl Gillmore

I have used Jane & the team for the last 6 years for all of my business & personal accounting needs. They have always been professional, easy to talk to & available when we have needed assistance.

Carl Gillmore

Carl Gillmore Landscape

John Briggs

Jane Noller has been my accountant for the last 15 plus years. I can testify to Jane’s professionalism and expeditious manner in dealing with the day to day issues that surrounds our business accounting.

John Briggs

Registered Building Certifier