Making personal tax-deductible contributions to your superannuation is a smart way to build long-term retirement wealth. However, even a small administrative mistake can lead to unexpected tax issues if the contribution is recorded incorrectly.
The good news? In many cases, the mistake can be fixed—but timing is critical.
The Common Mistake: Contribution Type Recorded Incorrectly
When you make a personal contribution to super and intend to claim a tax deduction, it must be recorded by your super fund as a personal contribution, not an employer contribution.
If the fund is told it’s an employer contribution and you later claim a tax deduction, the ATO may treat it as if:
- The fund received an employer contribution and
- You made a personal deductible contribution
This can cause the contribution to be counted twice, which may trigger excess concessional contribution tax and other penalties.
Why This Matters
Super funds report all contributions to the ATO. The ATO uses this information to:
- Calculate how much tax the fund should pay
- Track your concessional and non-concessional contribution caps
If the reporting is wrong, your tax outcome may also be wrong—often without you realising until much later.
Can the Error Be Corrected?
Yes. Super funds are required to correct material reporting errors and notify the ATO within 30 days of becoming aware of the issue, no matter how long ago the contribution was made.
You may be asked to provide evidence, such as:
- A bank statement showing the contribution came from your personal account
- Written confirmation of your original intent
The Important Catch: Tax Deduction Deadlines
While your super fund can fix the contribution classification at any time, your ability to claim a tax deduction is strictly time-limited.
To claim a deduction, you must:
- Lodge a valid Notice of Intent to Claim a Deduction with your super fund
- Receive written confirmation from the fund
This must happen before the earliest of:
- The day you lodge your income tax return for that year
- 30 June of the following financial year
- The date the contribution is withdrawn or used to start a super pension
If you miss these deadlines—for example, if you discover the error after 30 June of the following year—you will usually lose the right to claim the deduction, even if the fund later corrects the contribution.
In this situation, your tax return should be amended to remove the deduction claim to avoid further ATO issues.
A Simple Way to Think About It
Think of your super contribution like a parcel being sent.
If it’s labelled correctly, it arrives at the right tax destination.
If the label is wrong, the parcel might be redirected—but if the delivery deadline has already passed, you may still miss out.
How to Avoid Problems
- Clearly tell your super fund when a contribution is personal and deductible
- Lodge your Notice of Intent as early as possible
- Keep records showing where the money came from
- Seek advice before lodging your tax return
Book a Time to Talk
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Disclaimer and Warning
The information above is of a general nature only. It should not be used as a source to make financial decisions. It’s also important to note that the legislation and figures related to this topic tend to change regularly and therefore the information above may not reflect the current status. We recommend that if you are looking for advice on this matter, you should contact us.