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Edited version of private advice
Authorisation Number: 1051909071246
Date of advice: 22 October 2021
Subject: Deductibility of personal superannuation contributions
Is the taxpayer entitled to claim a deduction for personal superannuation contributions made to the Fund during the 2019-20 income year under section 290-150 of the Income Tax Assessment Act 1997 ("ITAA 1997")?
This ruling applies for the following period:
Income year ending 30 June 2020.
The scheme commences on:
1 July 2019.
Relevant facts and circumstances
The taxpayer's superannuation fund (the Fund) is a complying superannuation fund
During the 2019-20 income year, the taxpayer advised that they made a contribution to the Fund.
During the 2020-21 income year, you advised that you and the Taxpayer were experiencing unforeseen difficult personal circumstances.
In early July 2021, the taxpayer submitted a 'Notice of intent to claim or vary a deduction for personal superannuation contributions' form ("the Notice of Intent") to the trustee of the Fund.
In early September 2021, the taxpayer lodged their individual tax return for the 2019-20 income year.
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 290-167
Income Tax Assessment Act 1997 Section 290-168
Income Tax Assessment Act 1997 Section 290-170
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) 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 this case, the taxpayer des not satisfy this condition although they submitted a valid Notice of Intent to the Trustee. This is because the taxpayer did not provide the Notice of Intent to the Trustee by the earlier of the:
• date when they lodged their individual tax return for the 2019-20 income year in which they made their contribution; or
• end of the income year following the 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 the Fund during the 2019-20 income year.