When can I make tax deductable superannuation contributions?

In order for your superannuation contribution to be tax deductable, you need to be self employed. The thinking here is that in this circumstance, there is no employer making superannuation contributions for you – you are your own employer. So therefore you can make contributions as though you were an employer. Employers claim superannuation contributions as a tax deductable expense, as they do any other expenses incurred in running their business.

Where it can get a bit tricky is where someone does some paid employment, and is also self-employed. The test employed in this instance is known as the 10% test. The income you derive from work as an employee, must not exceed 10% of the total income you earn for the year. So put another way, for you to be considered self-employed, you must generate at least 90% of your income from self-employment.

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