Nobody Pays Your Super For You Anymore — Now What?
As an employee, the Superannuation Guarantee means your employer is legally required to pay a set percentage of your wage into your super fund, on top of your pay, without you having to think about it. As a contractor invoicing under your own ABN, that obligation generally disappears — which means your super balance grows exactly as much as you decide to make it grow, and not a cent more.
Why this sneaks up on people
It's easy to keep meaning to "sort out super later" once the immediate pressures of tax, insurance, and cash flow are handled. The problem is that super is a long-term compounding game, and a few years of zero contributions early in a contracting career is a genuinely expensive gap to close later.
How self-funded contributions and the deduction actually work
You can make personal contributions to your own super fund at any time — a lump sum, regular transfers, whatever suits your cash flow. Whether that contribution is tax-deductible depends on one extra step almost everyone forgets:
- Make the contribution to your fund.
- Complete and lodge a Notice of Intent to Claim a Deduction (sometimes shortened to NOI) with your super fund.
- Receive a written acknowledgment back from the fund confirming they've accepted the notice.
- Only then can you claim the deduction in your tax return.
Miss step 2 or 3, and the contribution is still in your super fund — but it's treated as a non-concessional (after-tax) contribution with no tax deduction at all. The money isn't lost, but the tax benefit is, and it generally can't be fixed retroactively once your return is lodged.
Contribution caps still apply
Concessional (deductible) contributions — including any amount you're claiming a deduction for — count toward the annual concessional contributions cap. Going over it doesn't make the excess illegal, but it does trigger extra tax, so it's worth checking your total contributions (including any from other sources) before assuming a large lump sum is fully deductible.
A practical approach
- Treat super like a recurring bill rather than a leftover, the same way you'd budget for tax.
- If contributing via regular BPAY or direct debit to a fund, set a calendar reminder to lodge the Notice of Intent before you lodge your tax return — not after.
- Keep the fund's written acknowledgment with your tax records; your accountant will want to see it.