Super is one of the most tax-effective ways to save for retirement

Often the Government will tax superannuation less than other investments or savings, to encourage the growth of your super account.

Super contributions tax is calculated on:

  • your age
  • your income
  • the amount of your super contribution
  • the type of super contribution.

Tax is deducted from your account after the contribution is received and paid to the Australian Taxation Office (ATO).

Superannuation tax is deducted at three different stages:

  1. When super goes into your account
  2. From the investment earnings before they’re added to your account
  3. When you withdraw money from your account.

Your Cbus superannuation can be a tax effective investment, which may be:

  • taxed less on any investment earnings it makes, compared with many other investments
  • tax-free when you withdraw it after age 60
  • tax deductible for those who are eligible sole traders or self-employed
  • tax-offset when personal contributions are made by a spouse.

Read more about How super is taxed (PDF).

Why we need your tax file number

You can choose not to give us your tax file number (TFN), however if you do not give us your TFN:

  • your before-tax super contributions and withdrawals are taxed at a higher rate
  • Cbus can’t accept your after-tax or personal contributions
  • it may be harder to find any lost super or combine your super accounts.

How to find your other super accounts

You can give Cbus super search consent.

If you’ve had more than one job, you may have more than one super account. This means you could be paying more in fees than you need to. By combining your super into just one account, you’ll save fees and reduce the hassle of managing multiple accounts.

Cbus provides a free lookup service to help you find lost, unclaimed and other super accounts.

Giving your permission allows us to use your TFN to do a search on your behalf, with other super funds and the ATO. We’ll let you know if any other super accounts are held in your name.

How to supply your TFN

Can I claim a superannuation tax deduction?

To be eligible to claim a superannuation tax deduction, you need to:

  • have made a personal contribution during a financial year
  • satisfy the maximum earnings as an employee condition
  • meet the age-related requirements.

To make a claim, you need to:

  • notify Cbus by completing the appropriate notice
  • receive notice acceptance from Cbus.

Maximum earnings for employees

To fulfil the maximum earnings condition for the financial year, you must earn less than 10% of your total income from your employment activities.

Total income includes:

  • any assessable income
  • reportable fringe benefits
  • total reportable employer super contributions and salary sacrifice contributions, for the financial year.

Satisfying the age requirements

  • You must be between 18 and 75
  • If you’re 75, you need to make your personal contribution no later than 28 days after the month of your 75th birthday.
  • If you’re under 18 at the end of the financial year, you may still be eligible for a tax deduction if you have earned income as an employee or business operator in the same period as your claim.

You’ll need to let us know you’re going to claim a tax deduction before:

  • any withdrawal or transfer of funds from your Cbus account
  • the day you lodge your income tax return with the ATO for the financial year in which the contribution was made
  • the end of the financial year following the year when contributions were made.

Download the approved Notice of intent form (NAT 71121) from the ATO website.

Adjusting previous lodgement

If you’ve already lodged a notice with Cbus and want to adjust the amount stated in the earlier notice, you may also complete the form. If you’ve already lodged your tax return or it’s a new financial year, you cannot adjust the amount. Once lodged, your notice cannot be withdrawn.

Fund confirmation

After validation, we’ll write to you to confirm acceptance of your tax deduction.

You must receive this notice before you can claim a tax deduction. We recommend you provide this to your tax adviser or accountant, or on request by the ATO.

When you claim a tax deduction for your personal contributions, they are no longer eligible for assessment to the Government Co-contribution. The amount you claim will also be taxed by Cbus at a rate of 15%.

Further reading

You can read more about tax on superannuation by clicking on the link below.