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Edited version of private advice

Authorisation Number: 1051934842746

Date of advice: 22 December 2021

Ruling

Subject: Deductibility of personal superannuation contributions

Question

Can you claim a tax deduction for your personal superannuation contributions made under section 290-150 of the Income Tax Assessment Act 1997 (ITAA 1997)?

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

On DD MM YYYY you made a $xxxx voluntary superannuation contribution in to your XXX Superannuation account.

On DD MM YYYY the $xxxx voluntary superannuation contribution in to your XXX superannuation account returned, due to bank details being incorrect (the payment rejected).

On DD MM YYYY you made a $xxxx voluntary superannuation contribution in to your XXX superannuation account.

On DD MM YYYY the $xxxx voluntary superannuation contribution in to your XXX superannuation account returned, due to bank details being incorrect (the payment rejected).

On 30 June YYYY you made a $xxxx voluntary superannuation contribution in to your XXX superannuation account.

XXX Superannuation Fund reported the payment as being received on 1 July YYYY.

Relevant legislative provisions

Income Tax Assessment Act 1997 section 290-150

Income Tax Assessment Act 1997 section 290-170

Reasons for decision

Section 290-150 of the ITAA 1997 states that you can deduct a contribution you make to a superannuation fund or a retirement savings account for the purposes of providing superannuation benefits for yourself, in the income year that the contribution was made, provided all of the following conditions are satisfied:

•         the complying superannuation fund conditions under section 290-155 of the ITAA 1997;

•         if applicable, the maximum earnings as employee condition under section 290-160 of the ITAA 1997;

•         the condition that a contribution is not a downsizer contribution under section 290-167 of ITAA 1997;

•         the condition that a contribution is not a re-contribution under first home super saver scheme under section 290-168 of the ITAA 1997;

•         the condition that a contribution is not a re-contribution of a COVID-19 early release amount under section 290-169 of the ITAA 1997;

•         age-related conditions under section 290-165 of the ITAA 1997; and

•         the notice of intent to deduct conditions under section 290-170 of the ITAA 1997.

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.

To claim a tax deduction, you must have made the contribution in the income tax return for the income year you are claiming the deduction for. You failed to meet the condition under paragraph 290-170(1)(b) of ITAA 1997 for the $xxx payment as it was received on 1 July YYYY, and therefore section 290-150 of ITAA 1997 does not apply. As a result, you cannot claim a tax deduction for your superannuation contributions made in the 20XX-XX income year.