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    TaxKiln Australia
    TaxKilnAustralia tax guidance

    Self-Employed Super Contributions

    Personal deductible contributions and the s 290-150 notice requirement, the $30,000 concessional cap, carry-forward unused cap rules, non-concessional contributions ($120,000 and bring-forward), the government co-contribution ($500 maximum), spouse contribution tax offset, Division 293 additional tax, and strategies for lumpy self-employed income.

    Self-employed people are not legally required to pay superannuation for themselves, but personal deductible contributions are one of the most tax-effective tools available. A $30,000 deductible contribution converts income taxed at marginal rates (up to 45% plus 2% Medicare) into income taxed at 15% in the fund (or 30% under Division 293 if combined income and contributions exceed $250,000). The critical compliance step is lodging a valid s 290-150 notice of intent to claim with the fund, and receiving acknowledgment, before lodging the return for that year or the end of the following income year (whichever is earlier).

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    Personal deductible contributions

    A self-employed person (sole trader, partner, or someone deriving less than 10% of income from employment) can claim a tax deduction for personal super contributions made from after-tax money, under ss 290-150 to 290-170 of the ITAA 1997. The contribution is made from your bank account to your fund as a non-concessional contribution, then converted to concessional status once you lodge the s 290-150 notice and the fund acknowledges it. The fund then applies 15% contributions tax (or 30% for the Division 293 portion if combined income and contributions exceed $250,000).

    Concessional contributions cap ($30,000)

    The concessional cap for 2025-26 is $30,000 per year for all individuals regardless of age. Concessional contributions include employer SG (12%), salary-sacrifice contributions, and personal deductible contributions. For a purely self-employed person with no employer SG, the entire $30,000 is available for personal deductible contributions.

    Carry-forward unused cap

    Self-employed people with lumpy income can use unused portions of the concessional cap from up to 5 prior years, provided total super balance was less than $500,000 on 30 June of the prior year. This is particularly powerful for tradespeople and consultants who have quiet years followed by large project windfalls.

    Non-concessional contributions ($120,000 and bring-forward)

    Non-concessional contributions are made from after-tax income and do not generate a tax deduction. The annual cap is $120,000 for 2025-26. If under 75 at the start of the financial year and within total super balance (TSB) thresholds, you can bring forward up to 2 future years, contributing up to $360,000 in a single year (cap then locked for a 2-year period). If TSB is at or above $2,000,000 (the general transfer balance cap for 2025-26) at the previous 30 June, non-concessional contributions generally cannot be made.

    Government co-contribution

    The government contributes up to $500 (50% of the first $1,000 of non-concessional contributions) where eligibility conditions are met. At least 10% of total income must come from running a business, self-employment, or eligible employment. The co-contribution phases out linearly between $47,488 and $62,488 for 2025-26. Additional requirements: under 71 at year-end, lodged a tax return, not holding a temporary visa (with limited exceptions), TSB below $2,000,000, and within the non-concessional cap.

    Spouse contribution tax offset

    A voluntary non-concessional contribution to a spouse's super account can generate a tax offset of up to $540 per year (18% of the first $3,000 contributed). The receiving spouse must have income of $37,000 or less for the full offset, phasing to $0 between $37,001 and $40,000. The receiving spouse must be under 75, both must be Australian residents, spouse's TSB must be below $2,000,000, and the contributions must not exceed the spouse's non-concessional cap.

    Tax rates inside super

    Super provides a concessionally taxed environment at every stage: contributions, investment earnings, and (in retirement) pension phase.

    Forward look: 2026-27 cap increases

    For 2026-27, concessional cap rises to $32,500, non-concessional cap to $130,000, bring-forward maximum to $390,000, and the general transfer balance cap to $2,100,000. Self-employed people planning large carry-forward contributions in 2026-27 should factor these higher caps into their strategy.

    Statute references

    • ITAA 1997 Division 290 (deductions for super contributions, s 290-150 to 290-170 notice requirements)
    • ITAA 1997 Division 291 (concessional contributions caps and excess treatment)
    • ITAA 1997 Division 292 (non-concessional contributions and excess treatment)
    • ITAA 1997 Division 293 (additional 15% tax for high-income earners)
    • ATO 'Caps, limits and tax on super contributions' (current year caps and thresholds)
    • ATO government co-contribution guidance (income thresholds and eligibility)
    • ATO spouse contributions guidance (tax offset conditions)
    • NAT 71121 (notice of intent to claim deduction form)

    Frequently asked questions

    What is the s 290-150 notice and why is it critical?+
    The notice of intent to claim a deduction for personal super contributions (ATO form NAT 71121) must be given to your fund and acknowledged before you lodge the tax return for that year or before the end of the following income year, whichever is earlier. Without a valid notice and acknowledgment, the contribution remains a non-concessional contribution (no tax deduction, counts against the $120,000 non-concessional cap instead of the $30,000 concessional cap).
    How does the carry-forward rule help self-employed people?+
    Self-employed income is often lumpy. If you make minimal concessional contributions in lean years, the unused cap accumulates for up to 5 years. In a high-profit year, you can make a large deductible contribution (standard $30,000 cap plus accumulated unused cap) to reduce taxable income significantly. This requires total super balance below $500,000 at the prior 30 June.
    What happens if I exceed the $30,000 concessional cap?+
    Excess concessional contributions are included in your assessable income at marginal rates, with a 15% tax offset for the contributions tax already paid by the fund. The ATO also calculates an excess concessional contributions charge. This can make excess contributions very expensive, particularly for higher-income earners already in the 37% or 45% bracket.
    Can my spouse benefit from my super contributions?+
    Yes. A voluntary non-concessional contribution to a spouse's super account can generate a tax offset of up to $540 per year (18% of the first $3,000 contributed) where the receiving spouse's income is $37,000 or less ($540 phases to $0 between $37,001 and $40,000). If the lower-income spouse also makes their own $1,000 non-concessional contribution and earns below $47,488, they can trigger a $500 government co-contribution.

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