WHAT THIS MEANS: Until 1 July 2017, individuals had to meet strict rules to be able to claim a tax deduction for their personal super contributions. The requirement, known as the “10% rule”, meant that an individual could not claim a tax deduction on their personal super contributions if 10% or more of their earnings was as an employee. This included assessable income, reportable fringe benefits and total reportable employer super contributions.
The Liberals abolished this rule from 1 July 2017, opening up personal tax deductions on super contributions for anyone who could contribute. Obviously, the benefit of the tax deduction is limited by the concessional contribution cap (currently $25,000 pa).
Labor plans to bring the 10% rule back.