Requirements to claim a deduction

Before your client can claim a deduction for their personal superannuation contributions, they must:

Contributions used to commence an income stream

In accordance with the relevant tax law, once a contribution has been used in part or in full to commence an income stream, a fund can’t accept a deduction notice for the contribution. 

Concessional contributions cap

The personal superannuation contributions that your client claims as a deduction will count towards their concessional contributions cap. From 1 July 2021, the concessional cap is $27,500. From 1 July 2024, the concessional cap will increase to $30,000.

When deciding whether to claim a deduction for superannuation contributions, they should consider the impacts that may arise from this, including whether:

  • they’ll exceed their contribution caps
  • Division 293 tax applies to them
  • they want to split their contributions with their spouse
  • it will affect their superannuation co-contribution eligibility.

If they exceed their cap, the excess is included in their assessable income and will be taxed at their marginal tax rate, less a 15% tax offset, and there may be additional interest charges. The net of tax excess amount may be withdrawn from the fund. Also, if they choose not to withdraw the excess, the excess concessional contributions will count towards their non-concessional contributions cap. 

Monitoring your client's contribution

We don’t monitor amounts of concessional and non-concessional contributions made into a Wrap account. They’re recorded and reported but it’s your, your client’s, or your client’s accountant’s responsibility to check the amounts that have been contributed and the amounts remaining to be contributed. 

Contributions and deductions are reported to the ATO at least every week via the Member Account Transaction Service (MATS) and over contributing will likely be met with taxation implications, so we strongly recommend keeping an eye on your client’s contributions. 

For more information read the relevant section below.
 

Check your client's contributions

You can check the amount of contributions your client has made by running a Portfolio Summary Report or Super Contributions Report in Adviser Online.

To check your client’s contributions via the Portfolio Summary Report:

  1. Log in to Adviser Online
  2. Search for an account using either the account name or number in the global account search bar
  3. Click Reporting
  4. Select Portfolio Summary using the check box
  5. Choose to display in your browser (screen) or to download the report (pdf)
  6. Click generate.

To check your client’s contributions via the Super Contributions Report:

  1. Log in to Adviser Online
  2. Select Go To and click Macquarie Wrap
  3. Select Super Contributions Report from the Quicklinks dropdown on the home page
  4. Select the adviser code
  5. Generate the report.

Correct a contribution mistake made by your client

If the contribution has been classified incorrectly, we require documentation from your client to review the case. The information you need to provide can be found in our Contribution Amendment Guide, which is available at Adviser Tools.

We’ll let you know our decision once we’ve reviewed the case.  

Please note, generally, once a contribution is made to the fund it can’t be returned. The ATO & APRA have a strict view, which provides fund trustees with very limited scope to return contributions based on an error. Our Contribution Amendment Guide is not intended for contribution refund requests.

Confirm your client has claimed a tax deduction

We’ll send your client an acknowledgment that the deduction notice has been received once they’ve submitted a Deduction notice for personal contributions form found in Adviser Tools.

You’ll be able to see the tax deducted from the account in the cash transactions once the deduction has been processed.

Claim a proportional tax deduction after a withdrawal

The amount that a client can claim as a tax deduction may not always equal the total personal contributions made as a result of a withdrawal after a contribution was made but before notice of intent to claim a tax deduction was submitted.

Withdrawals reduce the amount that a member can claim due to the proportioning rule where the tax-free and taxable components of a member’s super benefit are taken to be paid in the same proportion as the tax components of the member’s interest in the super fund.

The proportioning rule prevents the member from dictating which components to withdraw when a benefit is paid. That is, they can’t choose to withdraw just the tax-free component.

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