• L Other deductions

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Show at L the total amount of all other deductions that do not fall into any of the other categories shown in section C Deductions.

    Deductions that are specifically allowable for your superannuation activities include amounts in the following nine categories.

    Exclusion of personal contributions

    A complying fund can deduct an amount of personal contributions, to the extent the contributor's deduction for them has been reduced by a notice under section 290-180 of the ITAA 1997.

    Generally, the deduction is allowed in the year in which the notice is received. However, if the notice is received after the fund has lodged its tax return and the fund is unable to utilise the deduction fully in the year in which the notice is received (for example, if that year's taxable income is exceeded by the deduction or the fund would lose the benefit of franking credits), the fund can amend the assessment of the earlier year in which the contribution was made (subsection 295-195(3) of the ITAA 1997).

    Forex losses

    Show at L any deductible foreign exchange losses made by the fund that have not been included at any other category - see Foreign exchange (Forex) gains and losses.

    Contribution that is a fringe benefit

    A superannuation entity can claim a deduction for an amount included in its assessable income that is a fringe benefit because it will be taxed as a fringe benefit in the hands of the contributor.

    Attention

    A contribution made to a complying superannuation fund is not a fringe benefit.

    End of attention

    Return of contributions by non-complying funds

    A superannuation fund that has been non-complying since 1 July 1988, or since it was established, can deduct an amount which it returns to the entity which had paid the amount to it, provided the entity includes the amount in its assessable income.

    Deductible balancing adjustment amounts

    If the fund ceases to hold or to use a depreciating asset, it will need to calculate a balancing adjustment amount to include in its assessable income or to claim as a deduction.

    Further Information

    For more information, see Guide to depreciating assets 2009.

    End of further information

    Environment protection expenditure

    A deduction is allowed for certain capital expenditure incurred for the sole or dominant purpose of:

    • preventing, combating or rectifying pollution of the environment, or
    • treating, cleaning up, removing or storing waste.
    Further Information

    For more information, see Guide to depreciating assets 2009.

    End of further information

    Listed investment company (LIC) capital gain amount

    A LIC can pay a dividend which includes a LIC capital gain amount to a complying superannuation entity. The complying superannuation entity can claim a deduction of 33 1/3 % of that LIC capital gain amount. The LIC's dividend statement shows the LIC capital gain amount.

    A non-complying superannuation fund is not entitled to claim a deduction for the LIC capital gain amount included in any dividends paid to it by a LIC.

    Deduction relating to foreign non-assessable non-exempt income

    Certain expenses relating to foreign non-assessable non-exempt income are allowable deductions against the fund's assessable income if the expenses are a cost in relation to certain debt interests incurred in an income year that begins on or after 1 July 2001 (see section 25-90 of the ITAA 1997). For superannuation funds, the relevant non-assessable, non-exempt income is foreign source income exempt from income tax under sections 23AI and 23AK of the ITAA 1936.

    These deductions should not be applied against D1 Gross foreign income at item 10 for the purpose of calculating D Net foreign income or a foreign loss.

    Superannuation (Financial assistance funding) Levy Act 1993

    Levies imposed by regulations under section 6 of the Superannuation (Financial Assistance Funding) Levy Act 1993 can be deducted by regulated superannuation funds and ADFs in the year in which the levy is incurred.

    Print in the Code box the code from table 6 that best describes the greatest amount written at LOther deductions.

    Attention

    You cannot claim a deduction against the assessable income of the fund for benefits paid.

    There is no provision for funds to transfer or pass on deductions to other entities (for example, life insurance companies or PSTs).

    End of attention

    Table 6: Other deduction codes

    Code

    Other deductions in respect of:

    C

    Exclusion of personal contributions

    F

    Forex losses

    B

    Contribution that is a fringe benefit

    R

    Return of contributions by non-complying funds

    A

    Deductible balancing adjustment

    E

    Environment protection expenditure

    I

    LIC capital gain amount

    N

    Deduction relating to foreign non-assessable non-exempt income

    S

    Superannuation (Financial Assistance Funding) Levy Act 1993

    O

    Other deductions not listed above

    Last modified: 25 Nov 2009QC 21714