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Written by Peter Stanhope
on February 12, 2019

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.


You may also like:


Understanding superannuation when you’re self-employed

Everything you need to know (and do) now that you’re the boss  


How do I pay myself super now that I’m self-employed?

There are several elements to it. But it’s much easier than you think..  


How much super should I pay myself when I'm self-employed?

A guide to how much super will get you the retirement you want  

Join our community to discover how GigSuper can help you get your super on track.


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Example disclaimer

Alex is a fictional persona based on some typical attributes of a self-employed individual. Please make sure that GigSuper is right for your circumstances, even if your situation is identical or similar to Alex.

Figures are shown in today’s dollars, however they are not intended to be reflective of any particular investment option within GigSuper. These results are for illustrative purposes only and do not represent actual or expected returns that any particular investor might experience.

The projections are based on a number of assumptions, including but not limited to the following:

  • For both the super and non-super investment products an annual return of:
    • 2.37% capital gain
    • 4.88% income
    • 0.56% franking.
  • Tax rates on income and capital gains both inside and outside super remaining constant which may not occur.
  • A steady inflation rate of 2.5% which may not occur.

The prospective financial information provided is not a reliable indicator of future performance in that it is predictive in nature and may be affected by inaccurate assumptions, unknown risks and other uncertainties. Therefore, the prospective financial information may differ materially from the results ultimately achieved.

The above comparison in no way constitutes advice to invest in any particular investment product and we recommend you seek independent financial advice before deciding whether investing in super or non-super products is right for you.