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Edited version of private advice
Authorisation Number: 1051793918994
Date of advice: 5 January 2021
Subject: Deductibility of personal superannuation contributions
Is the taxpayer entitled to claim a deduction for personal superannuation contributions made to their superannuation fund during the 20XX-XX income year under section 290-150 of the Income Tax Assessment Act 1997 ("ITAA 1997")?
This ruling applies for the following period:
Income year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The taxpayer's superannuation fund, Fund A, is considered to be a complying superannuation fund.
On 25 June 20XX, the taxpayer:
a. made a superannuation contribution to Fund A; and
b. advised Fund A at the time of the contribution that they intend to claim this deduction in their tax return for the 20XX-XX income year.
On the same date the contribution was made (i.e. on 25 June 20XX), the staff of Fund A acknowledged the taxpayer in the form of a phone call that the taxpayer intended to claim for that payment in their income tax return for the 20XX-XX income year.
On 17 July 20XX, the taxpayer submitted a Notice of Intent to Claim form to Fund A. The taxpayer has provided us with a copy of this notice as evidence.
On 23 July 20XX, the taxpayer lodged their income tax return for the 20XX-XX income year.
The taxpayer did not receive a written acknowledgement from Fund A in respect of their Notice of Intent to Claim form for the 20XX-XX income year.
Relevant legislative provisions
Income Tax Assessment Act 1997section 290-150.
Income Tax Assessment Act 1997section 290-155.
Income Tax Assessment Act 1997section 290-165.
Income Tax Assessment Act 1997section 290-167.
Income Tax Assessment Act 1997section 290-168.
Income Tax Assessment Act 1997section 290-170.
Income Tax Assessment Act 1997 section 995-1
Reasons for decision
A person can claim a deduction for personal contributions made to their superannuation fund for the purpose of providing superannuation benefits to themselves under section 290-150 of the ITAA 1997.
However, subsection 290-150(2) of the ITAA 1997 states that all of the conditions in sections 290-155, 290-165, 290-167, 290-168 and 290-170 must be satisfied before the person can claim a deduction for contributions made in that income year.
Notice of intent to deduct conditions
Relevantly, subsection 290-170(1) of the ITAA 1997 states that in order to claim a deduction for personal superannuation contributions, a person must provide a valid Notice of Intent to the trustee of their superannuation fund by the earlier of:
• the date on which you lodged your individual tax return for the income year in which the contribution was made; or
• the end of the income year following the income year in which the contribution was made.
In the taxpayer's case, they do not satisfy this condition although they have submitted a valid Notice of Intent to the Trustee of Fund A ("the Trustee"). This is because the taxpayer did not provide the Notice of Intent to the Trustee by the earlier of 30 June 20XX (i.e. the end of the income year following the income year in which they made their contribution) or 23 July 20XX (i.e. the date when the taxpayer lodged their individual tax return for the 20XX-XX income year in which they made their contribution).
The legislation around deductions for personal superannuation contributions is quite specific and only allows a deduction where all of the necessary requirements have been met. It does not contain a discretion that can be exercised by the Commissioner where a Notice of Intent has been provided outside the required timeframe.
Accordingly, the taxpayer is not able to claim a deduction for the contributions they made to Fund A during the 20XX-XX income year.