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Edited version of private advice

Authorisation Number: 1051948195954

Date of advice: 11 February 2022

Ruling

Subject: Personal superannuation contributions deductible

Question

Have the requirements under section 290-170 of the Income Tax Assessment Act 1997 (ITAA 1997) for claiming a deduction for personal superannuation contributions been satisfied?

Answer

No.

This ruling applies for the following period:

Year ending 30 June 20XX

The scheme commences on:

1 July 20XX

Relevant facts and circumstances

Client made personal contributions to a complying fund (Fund A) in the 20XX income year.

Sometime in the 20XX income year the Client was made aware that they should have lodged a Notice of intent to claim a deduction for personal contributions form (NAT 71121) (NOI).

The Client lodged his income tax return for the 20XX income year after 30 June 20XX.

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 290-160

Income Tax Assessment Act 1997 section 290-165

Income Tax Assessment Act 1997 section 290-170

Summary

The Client did not provide a valid notice of intent to deduct the contribution and did not receive acknowledgment of receipt of the notice. Hence, a deduction for the contribution cannot be claimed as the requirements under section 290-170 of the ITAA 1997 have not all been met.

Detailed reasoning

Personal superannuation contributions deductible

An individual can claim a deduction for personal contributions made to a superannuation fund for the purpose of providing superannuation benefits for themselves under section 290-150 of the ITAA 1997, provided certain conditions are met.

Subsection 290-150(2) of the ITAA 1997 provides that the conditions in sections 290-155, 290-160 (if applicable), 290-165 and 290-170 of the ITAA 1997 must all be satisfied before the person can claim a deduction for the contributions made in that income year.

Notice of intent to deduct conditions

Section 290-170 of the ITAA 1997 relevantly states:

(1) To deduct the contribution, or a part of the contribution:

(a) you must give to the trustee of the fund or the RSA provider a valid notice, in the approved form, of your intention to claim the deduction; and

(b) the notice must be given before:

(i) if you have lodged your income tax return for the income year in which the contribution was made on a day before the end of the next income year - the end of that day; or

(ii) otherwise - the end of the next income year; and

(c) the trustee or provider must have given you an acknowledgment of receipt of the notice.

As such, in order to deduct the contribution, the trustee of Fund A must be given a valid notice in the approved form of the Client's intention to claim the deduction by the relevant date, being 30 June 20XX as the Client's income tax return was not lodged by that date.

Hence, the Client will not be able to claim a deduction for the contribution made to Fund A as they did not provide a valid notice of intent to deduct the contribution and did not receive acknowledgment of receipt of the notice.