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Edited version of private advice
Authorisation Number: 1051798721928
Date of advice: 25 January 2021
Subject: Deductibility of personal superannuation contributions
Is the taxpayer entitled to claim a deduction for personal superannuation contribution made to Fund A during the 2017-18 income year under section 390-150 of the Income Assessment Act 1997 (ITAA 1997)
This ruling applies for the following period
Year ended 30 June 2018
The scheme commenced on:
1 July 2017
Relevant facts and circumstances
In 2018, the taxpayer made a personal contribution to the Fund.
On the same day as the contribution was made, the taxpayer telephoned the Fund to confirm the contribution will be received before the end of the 2017-18 income year so they could claim a personal superannuation contribution deduction (PSCD).
The taxpayer was advised by the Fund during the phone call that the contribution will not be received by 30 June 2018.
The contribution was paid into the taxpayer's super account with the Fund before 30 June 2018.
In May 2019, the taxpayer's 2018 income tax return was lodged.
In 2019 the taxpayer lodged a notice of intent to claim a PSCD for the contribution of $25,000 for the 2018-19 income year with the Fund.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 290-150
Income Tax Assessment Act 1997 section 290-155
Income Tax Assessment Act 1997 section 290-165
Income Tax Assessment Act 1997 section 290-170
Reasons for decision
The taxpayer cannot claim a deduction of $25,000 for the contributions they made in the 2017-18 income year because they did not provide a valid notice to the trustee of the Fund
The Commissioner has no discretion to allow a deduction for a superannuation contribution where a valid notice has not been provided.
A person can claim a deduction for personal contributions made to their superannuation fund for the purpose of providing superannuation benefit 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 and 290-170 of the ITAA 1997 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 they lodged their 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 contributions was made: and
• The trustee or provider must have given you an acknowledgment of receipt of the notice.
Subparagraph 290-170(2) of the ITAA 1997 outlines when the notice is not valid. Amongst other reasons, it includes a situation where:
• the notice is not in respect of the contribution.
In the taxpayer's situation, the notice was given to the fund for 2018-19 income in respect of a contribution that was made in the 2017-18 income year.
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 provide the Commissioner power to exercise discretion where a valid notice has not been provided.
Accordingly, the taxpayer is not able to claim a deduction for the contribution of $25,000 they made to the Fund during the 2017-18 income year.