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Edited version of private advice

Authorisation Number: 1051949341105

Date of advice: 2 March 2022

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

Relevant facts and circumstances

In the 20XX-XX income year, you paid $XXX into your investment account.

You have stated that you intended to make the payment to your superannuation account, however it was mistakenly paid into your investment account.

Your superannuation fund and investment provider are under the same platform.

No evidence has been provided to show that you lodged a Notice of intent to claim or vary a deduction for personal contributions form (NAT 71121) with the superannuation fund, or that you received an acknowledgement from the fund of your notice of intent to claim a deduction.

You have requested the Commissioner's discretion to backdate the contributions so that you can place them into your superannuation account and claim the personal deduction.

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;

•         age-related conditions under section 290-165 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;

•         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.

Before you can claim a deduction for your personal super contributions, you must give your superannuation fund a Notice of intent to claim or vary a deduction for personal contributions form and receive an acknowledgement from your fund. You failed to meet the conditions under subsection 290-170(1) of ITAA 1997, and therefore section 290-150 does not apply. As a result, you cannot claim a tax deduction for your superannuation contributions made in the 2020-21 income year.

The Commissioner has no discretion under the ITAA 1997 to allow a personal superannuation contribution deduction in your income tax return where the conditions of section 290-170 are not satisfied.