Missed This Tax Break? Australians Urged to Act Fast Before June 30!

Australians making voluntary superannuation contributions could be missing out on significant tax savings if they don’t submit the required form before June 30.

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Missed This Tax Break? Australians Urged to Act Fast Before June 30! - Credit: Shutterstock | en.Econostrum.info - Australia

As the end of the financial year approaches, Australians making voluntary superannuation contributions need to be aware of a critical step to ensure they can claim deductions. Many taxpayers are missing out on significant savings due to a common mistake: failing to submit the Notice of Intent to Claim (NOI) form. This form instructs the Australian Taxation Office (ATO) to treat their superannuation contributions as pre-income, which results in benefits that could otherwise be lost.

Financial advisor Nicole Gardner has issued a warning, emphasizing that while making contributions is the first step, submitting the NOI form is just as essential. Without it, contributions are not eligible for the reduction that comes with superannuation payments. As the June 30 deadline draws closer, individuals must act quickly to avoid missing out on valuable breaks.

The Importance of the Notice of Intent to Claim Form

For Australians contributing to their superannuation, the NOI form plays a pivotal role. If completed and lodged correctly, it enables the ATO to treat voluntary contributions as though they were part of an individual’s pre-income. This treatment ensures that contributions are taxed at a concessional 15% rate, rather than at a higher marginal income rate, which can be as much as 47%.

Nicole Gardner, a financial adviser at Stellar Wealth, explained that many Australians fail to realize the necessity of the NOI form. “People might make a lump sum payment into their superannuation and think they’ve done everything correctly, but without lodging it, they miss out on the break,” she said. For individuals in higher brackets, the saving can be substantial.

The Risks of Missing the Deadline

The deadline for lodging the NOI form is fast approaching, with June 30 marking the end of the current financial year. Individuals who want to ensure they can claim a tax deduction for voluntary super contributions must submit it form by this date. Those who miss this deadline will not be able to claim the deduction for that year and may face financial penalties or higher taxes.

Gardner noted that if you are planning to make voluntary contributions before June 30, you have until mid-2026 to submit the NOI form. However, this only applies if the form pertains to contributions made during this financial year. For those who made contributions in the previous year, the deadline to lodge it is rapidly approaching.

Potential Savings for Higher-Income Australians

For Australians in the highest income tax brackets, the failure to submit the NOI form could result in significant financial losses. According to the financial data site Motley Fool, the average voluntary super contribution for individuals aged 55 to 59 is $5,027. If someone in this age group is subject to the highest income tax rate and fails to submit the NOI form, they could miss out on a potential tax break of $1,608 for the year.

Financial advisers suggest that people over the age of 55, who are preparing for retirement, could be particularly impacted by this missed opportunity. With the deadline looming, these individuals are encouraged to seek advice from a financial adviser to ensure they take full advantage of the tax-saving benefits available.

The Role of Banks and Financial Advisors

While the process of submitting the NOI form is straightforward, many Australians are unaware that they need to complete it when making contributions to their superannuation. Financial advisors play a crucial role in reminding clients about this critical step. Gardner explained that many people who make lump sum contributions from their bank accounts, without involving an accountant or financial adviser, are most likely to miss the NOI form submission.

When making personal contributions, the ATO sometimes struggles to differentiate between personal and employer contributions, which is why lodging the NOI form is essential. Submitting it ensures that the ATO treats the contribution as a personal, pre-tax income payment, enabling individuals to benefit from the reduced 15% tax rate on their contributions.

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