ATO Interpretative Decision

ATO ID 2003/678

Income Tax

• This document incorporates revisions made since original publication. View its history and amending notices, if applicable.

Issue

Is the taxpayer entitled to claim a deduction under section 82AAT of the Income Tax Assessment Act 1936 (ITAA 1936) in respect of personal superannuation contributions made?

Decision

Yes, the taxpayer is entitled to claim a deduction under section 82AAT of the ITAA 1936 in respect of personal contributions made?

Facts

The taxpayer lodged an income tax return for the year ended 30 June 2000 which included a deduction for personal superannuation contributions.

As a result of pre-issue audit action, the claim was disallowed because the taxpayer had failed to provide a notice in accordance with section 82AAT of the ITAA 1936. An assessment was issued on this basis.

The taxpayer then provided to the trustee of the superannuation fund the section 82AAT notice of his intention to claim the deduction and the acknowledgment of that notice by the fund trustee.

Reasons for Decision

Section 82AAT of the ITAA 1936 states:

'(1) A person who has made a contribution to a fund during a year of income is entitled to an allowable deduction for the contribution in the person's assessment for the year of income if all the following conditions are met:

(a)

the person is an eligible person in relation to the year of Income;

(b)

the person made the contribution in order to obtain superannuation benefits for the person or for dependants of the person in the event of the person's death;

(c)

the fund is a complying superannuation fund for the fund's year of income in which the person made the contribution;

(d)

the person has given notice under subsection (1A) in respect of the contribution and the trustee of the fund has acknowledged that notice under subsection (1A).

The deduction cannot be more than the amount covered by the notice under subsection (1A), and is also subject to the limits in subsection (2).

...

(2)The total of the deductions allowable to a taxpayer under this section for a year of income must not exceed:

(a)

the sum of:

(i)

$3 000; and

(ii)

75% of the amount (if any) by which the total amount of the contributions exceeds $3 000;

(b)

the taxpayer's deduction limit for the year of income (worked out under subsection (2A)).'

The taxpayer's only source of income was a distribution from a partnership. As such the taxpayer is an eligible person in the year of income. The taxpayer made the contribution to a complying fund in order to obtain superannuation benefits. The taxpayer has now supplied the required notice of intention to claim a deduction in respect of the personal superannuation contributions to the trustee of the superannuation fund. The superannuation fund trustee has acknowledged that notice.

All the requirements to claim the deduction in respect of personal superannuation contributions under section 82AAT of the ITAA 1936 have been met.

Year of income:  Year ended 30 June 2000

Legislative References:
Income Tax Assessment Act 1936
   section 82AAS
   section 82AAT

Related Public Rulings (including Determinations)
Taxation Ruling TR 96/25

Keywords
Deductions & Expenses
Superannuation contributions
Superannuation contributions by eligible persons

Business Line:  Superannuation

Date of publication:  1 August 2003

ISSN: 1445-2782