Tax deductions and super explained

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Let's talk about how you can use super to reduce the amount of tax you’re paying.

You see, earnings that you contribute to super CAN be taxed at 15%, versus outside of super where they’ll be taxed at your marginal tax rate (which can be as high as 45% – yikes!).

This is because the government wants you to save for your retirement so they give you this massive tax cut inside super.

It’s really important to note, however, that if you want the earnings that you contribute to super to be taxed at 15% instead of your marginal tax rate, you need to claim those Personal Contribution as a tax deduction.

Here’s a quick example that shows the amount of tax saved on the earnings contributed to super simply by going through the process of claiming the contribution as a tax deduction…

Alex is a freelance photographer that earns $80,000 per year and she decides to stash $5,000 of her earnings into super:

  If she does NOT claim her contribution as a tax deduction If she DOES claim her contribution as a tax deduction
Amount Contributed $5,000 $5,000
Tax Rate Payable 34.5%* 15%
Tax Paid $1,725 $750
Net Retirement Savings $3,275 $4,250


*includes Medicare levy

The way to claim your Personal Contributions as a tax deduction with most funds is:

  1. Make the contribution

  2. Print off a Notice of Intent to Claim form

  3. Complete the form

  4. Send it to the fund (usually via snail mail)

  5. Wait for the fund to process it

  6. Receive confirmation from your fund

  7. Use that receipt when you do your taxes

Even though it’s often worth doing, the manual, tedious nature of it can put people off.

Which is why we’ve automated the process.

When you set up your GigSuper account, just tell us that you want to claim all your contributions as a tax deduction, and we’ll automatically send you the receipt you need to claim your tax deduction come tax time.

Check it out now with just your name and email and we’ll guide you through.

The personal stories shaping GigSuper

"Gig cuts through all the fuss and automates everything for you. It's super quick to set up and is a delight to use. I've never been as engaged in my own superannuation as I am now (but why not? After all, it's my money). I can even tell you my super balance off the top of my head. And the feeling of being on top of and in control of my finances? As a freelancer, that's priceless."

Anna Rogan

Chief Copywriter & Do-gooder
"I’m stoked that there is now a fund specifically for self-employed people and I cannot wait to shout it from the rooftops. Couldn’t have come at a better time."

Hollie Barac

Mayday VA
"I'm great at saving money for super, but TERRIBLE at actually transferring it to the fund...BUT! Just signed up for GigSuper and I'm so excited to just have it automated! It's the only way I get money stuff done. So, it looks like I might even retire one day. Feel like a proper adult now."

Ami Williamson

Copywriter & Chief Cookie Enthusiast, Damn Write

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Doing something about your super shouldn't suck up a ton of your time. Use our guided tour to automate all those bits of super that are otherwise hard to do.

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