We recently ran a survey with our community asking for feedback around self-employment.
Some interesting insights came out of it.
But by far the biggest shocker was this:
Just under 65% of people had no idea they could claim tax deductions from super contributions.
Which basically means that a ton of our self-employed ‘colleagues’ have probably paid more tax than they needed to.
That hurts. Because people often feel like they’re paying too much tax anyway.
And for self-employed folks, claiming tax deductions through super can be a handy way to save for tomorrow while reducing taxable income today.
So why are more than half of us in the dark about it?
One answer might be that it’s not very clear how the process works.
Because, if you want to claim a tax deduction on the money you contributed, it’s actually NOT ENOUGH to simply make a Personal Contribution into your super.
You then manually have to notify your fund that you’ve made that Personal Contribution and that you intend to claim it as a tax deduction.
This involves filling out a ‘Notice of intent to claim’ form.
For most funds, that form needs to be downloaded from the ATO or from their website. Once it’s filled out, you then need to send it back to the fund (sometimes via snail mail...yes...snail mail 😬).
The fund should then send you acknowledgement of your intention to claim the contribution as a tax deduction – confirming your money will be taxed at 15%.
Once you have that acknowledgement, you then need to give it to your accountant at tax time.
That’s how you complete the whole process.
Because if you simply make a Personal Contribution into your super, and you don’t claim it as a tax deduction, that money will be taxed at your marginal tax rate...not at 15%.
So to recap quickly…
The FULL process is this:
1. Make a Personal Contribution to super.
2. Find and fill out a ‘Notice of intent to claim’ form.
3. Send it to your super fund.
4. Receive acknowledgment from your fund, confirming your contribution will be taxed by the fund.
5. Give the acknowledgment to your accountant.
It’s not hard.
But it is unnecessarily complicated.
Which is why we've automated this process inside the GigSuper app.
When you set up your GigSuper account, just tell us that you want to claim all your personal contributions as a tax deduction, and we'll automatically send you the receipt you need to claim your tax deduction come tax time.