If you're a barrister embarking on the beginning of your career, superannuation is likely something you plan to deal with “later”. But when "later" arrives, usually in June at the end of the financial year, it can resultin a rushed attempt to make a contribution before the tax deadline.

A better strategy is to set aside money for super contributions throughout the year. Not only does this help build your retirement savings, but personal super contributions can also provide a valuable tax deduction, reducing your taxable income.

However, to claim the deduction correctly, there is an important step many people miss: submitting a Notice of Intent to Claim a Deduction to their super fund.

In this guide, we’ll explain:

• Why setting aside money for super is importnat
• How concessional super contributions reduce tax
• The steps required to claim a tax deduction for personal super contributions
• When and how to submit a Notice of Intent

Why Many Business Owners Fall Behind on Super

Employees receive compulsory super contributions from their employer through the Super Guarantee.

But if you are any of the following then your super contributions may depend entirely on you making them manually:

• a sole trader
• a company director
• a business owner
• a contractor or professional

Because super is not part of everyday cash flow, it’s easy to prioritise other expenses such as:

• mortgage repayments
• business costs
• living expenses

As a result, many self-employed people, such as barristers, reach the end of the financial year having made little or no super contributions.

This can mean missing out on:

• significant tax deductions
• long-term investment growth in your super fund
• opportunities to reduce personal income tax

How Super Contributions Reduce Your Tax

One of the major benefits of superannuation is its tax efficiency. When you make concessional contributions, the money is generally taxed at 15% inside your super fund.

For many taxpayers, this is significantly lower than their marginal tax rate.

For example:

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This means contributing to super will reduce your taxable income while increasing your retirement savings. However, there is a limit.

The concessional contributions cap is currently $30,000 per year, which includes:

• employer super contributions
• salary sacrifice contributions
• personal super contributions that you claim as a tax deduction

These caps are monitored by the Australian Taxation Office (ATO).

Why Setting Aside Money During the Year Is Important

Instead of scrambling to find a large amount of cash before 30 June, it is strongly recommended that self-employed practitioners set money aside progressively throughout the year.

This strategy has several benefits.

Better cash flow management

Setting aside funds regularly avoids the pressure of makinga large contribution at the end of the financial year.

Reduced risk of missing the deadline

Many taxpayers intend to make super contributions but run out of time or available funds before the cutoff.

Earlier investment growth

Money contributed earlier to your super fund has more time to compound, which can significantly increase long-term retirement savings.

The Step Many People Miss: The Notice of Intent

Making a personal contribution alone is not enough to claim a tax deduction.

If you want to claim a deduction for personal super contributions, you must submit a Notice of Intent to Claim or Vary a Deductionfor Personal Super Contributions to your super fund.

This form tells your super fund that your contribution should be treated as a concessional contribution.

If you do not submit the notice:

• the contribution will be trated as a non-concessional contribution
• you cannot cliam a tax deduction
• the tax benefit is lost

This is one of the most common super mistakes we see.

When You Must Submit the Notice of Intent

The Notice of Intent must generally be lodged before the earlier of:

• the date you lodge your tax return for that financial year
• the end of the following financial year

However, best practice is to submit the notice shortly aftermaking the contribution.

Your super fund will then confirm the notice in writing, allowing you to safely claim the deduction in your tax return.

A Simple Strategy Many Business Owners Use

Many business owners adopt a simple system to manage super contributions.

1. Set aside a portion of income each month
2. Hold these funds in a separate savings account
3. Make a personal super contribution before 30 June
4. Submit a Notice of Intent to claim a deduction
5. Claim the deduction in your tax return

This approach ensures contributions are both tax deductible and financially manageable.

Superannuation is one of the most tax-effective ways to build long-term wealth in Australia, but to maximise the benefit, you need to:

• make the contribution on time
• stay within the concessional contributions cap
• lodge the Notice of Intent correctly

Without these steps, a well-intentioned super contribution may not deliver the tax deduction you expected.

How Much Should You Contribute to Super Each Year?

There is no single answer to how much you should contribute to super each year, as it depends on your income, age, and retirement goals.

However, many aim to maximise their concessional contributions cap, which is currently $30,000 per financial year.

This cap includes:

• employer super guarantee contributions
• salary sacrifice contributions
• personal super contributions claimed as a tax deduction

For example, if your employer contributes $15,000 in super, you may be able to make an additional $15,000 personal concessional contribution and claim a tax deduction for that amount.

For higher-income earners, contributing up to the concessional cap can be a very effective tax strategy, as income that may otherwise be taxed at 37% or 45% is instead taxed at 15% inside the super fund. There are of course other tax considerations, such as Division 293 and we therefore recommend speaking with a tax advisor prior to making personal contributions as there is no one size fits all when it comes to tax planning.

Setting aside money for super throughout the year makes it much easier to take advantage of the full concessional cap before 30 June.

What Happens if You Exceed the ConcessionalContributions Cap?

If your concessional contributions exceed the annual cap, the excess amount may be included in your taxable income.

The Australian Taxation Office will generally:

1. Add the excess contribution to your personal taxable income
2. Apply your marginal tax rate
3. Provide a 15% tax offset to account for the contributions tax already paid

In most cases, you will also have the option to release the excess contribution from your super fund.

Exceeding the cap does not usually result in penalties if dealt with correctly, but it can create unexpected tax outcomes, which is why monitoring your contributions throughout the year is important.

If you are making personal super contributions, it’s essential to keep track of:

• employer super guarantee payments
• salary sacrifice arrangements
• other concessional contributions

Carry Forward Concessional Contributions Explained

One powerful super strategy many are unaware of is the carry forward concessional contributions rule. If you have not fully used your concessional contributions cap in previous years, you may be able to carry forward unused amounts for up to five financial years.

This allows you to make larger deductible supercontributions in the future.

To use the carry forward rule:

• your total super balance must be below $500,000 at the previous 30 June
• you must have unused concessional cap amounts available

For example:

If you only contributed $10,000 in concessional contributions in a year where the cap was $30,000, you may have $20,000 ofunused cap.

That unused amount can potentially be used in a later yearto make a larger tax-deductible contribution.

This strategy is particularly useful for:

• business owners with fluctuating income
• people who receive bonuses or capital gains
• individuals approaching retirement who want to boost their super balance

The ATO keeps track of your unused concessional cap amounts, and these can be viewed through myGov or your super fund reporting.