# Super for 2nd Income Drivers



## UberDriverAU (Nov 4, 2015)

Prior to the 1st of July 2017, drivers who earned more than 10% of their assessable income through employment weren't able to claim a tax deduction for other super contributions made through "self-employment". That always struck me as a bit of an odd and unnecessary rule, and it was abolished at the start of this financial year. Drivers can now claim tax deductions for super contributions from any income source, if the right process is adhered to:

https://www.ato.gov.au/Business/Sup...t-if-you-have-to-pay-super/The-self-employed/


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## lui6155 (Apr 21, 2016)

Hmmm thanks for the heads up. So what does it all mean...well if you are projecting a *tax debt* (either because Uber is 2nd income or your ubering has generated a net profit) then you have the option of:
1) pay the income tax and contribute to the nations roads/health etc or
2) contribute to Super via a personal contribution.

The latter will incur a 15% contribution tax (versus 35% tax rates for income over $37k) so some benefit to be gained by adopting this tax planning strategy.

Got to make a profit first, its Uber after all/crap in Perth.


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## UberDriverAU (Nov 4, 2015)

lui6155 said:


> Hmmm thanks for the heads up. So what does it all mean...well if you are projecting a *tax debt* (either because Uber is 2nd income or your ubering has generated a net profit) then you have the option of:
> 1) pay the income tax and contribute to the nations roads/health etc or
> 2) contribute to Super via a personal contribution.
> 
> ...


Basically you can contribute anything (from any source) up to the concessional contribution limit then claim a tax deduction for the contribution and get the concessional 15% rate. As long as you are earning above the tax free threshold you get some benefit, but the largest benefit is for those in the highest tax bracket (paying 15% vs 47%). You need to tell your fund if you will be claiming a tax deduction so they can figure out whether or not to charge the 15% contributions tax. If you claim a deduction then they need to charge the 15% because it becomes "before tax" money, and if you don't claim a deduction then you don't pay the contributions tax because it's "after tax" money. Of course it's always best if you're making a profit, and it's still possible in Perth if you drive the right vehicle and aren't doing it full-time. I will agree with that full-timers aren't necessarily in a position where they can put aside money into their super, even if they wanted to.


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