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  • Elect or revoke election to be non-deductible before 1 July 2018

    Funds which provide defined benefit interests can elect to treat member contributions as non-deductible. This election is only required once and the non-deductible status of the fund will remain in place for all future years unless validly revoked.

    If you have not already elected for your fund, or the defined benefit interests within your fund, to be non-deductible and you wish to do so from the 2018–19 income year, you must notify us of the election before 1 July 2018.

    If your fund provides defined benefit interests and wants to revoke a previous election to be non-deductible, meaning you will accept deductible contributions for the 2018–19 income year and future years, you must notify us of the revocation before 1 July 2018.

    Any election or revocation notice received after 1 July 2018 will be invalid, meaning your current deductibility status will remain for the 2018–19 income year. This means you may need to accept tax-deductible contributions from your members in the 2018–19 income year.

    What you need to do

    If your fund provides defined benefit interests and for the 2018–19 income year, you must notify the Commissioner of Taxation of your election before 1 July 2018 if you want to either:

    • elect to be a non-deductible fund for the first time
    • elect to treat member contributions made to the defined benefit interests within the fund as non-deductible for the first time
    • revoke your previous election to be non-deductible.

    Super funds that are already non-deductible

    The following types of funds are already prescribed by law to be non-deductible and do not need to make this election:

    • commonwealth public sector superannuation schemes that have a defined benefit interest
    • constitutionally protected funds or other untaxed funds that would not include member contributions in their assessable income.

    Funds which provide defined benefit interests that are not prescribed by law to be non-deductible but have already notified of their election to be non-deductible, are not required to make this election again.

    Next step:

      Last modified: 11 May 2018QC 55393