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Edited version of your written advice
Authorisation Number: 1013024210290
Date of advice: 26 May 2016
Ruling
Subject: Deductibility of personal superannuation contributions
Question
Can the Taxpayer claim a deduction for personal superannuation contributions made to the Fund, without having provided a valid notice of intent?
Answer
No
This ruling applies for the following period:
Income year ended 30 June 2015
The scheme commences on:
1 July 2014
Relevant facts and circumstances
This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling.
The Taxpayer was appointed a financial manager.
The Taxpayer also granted a general power of attorney to the financial manager.
The financial manager made a contribution into the Fund, which was intended to be a personal concessional superannuation contribution.
The financial manager and the Taxpayer failed to provide a notice of intent to claim a deduction for personal superannuation contributions to the Fund, before an allocated pension was commenced by the Taxpayer.
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 Subsection 290-160(1)
Income Tax Assessment Act 1997 Section 290-165
Income Tax Assessment Act 1997 Subsection 290-165(2)
Income Tax Assessment Act 1997 Section 290-170
Reasons for decision
Summary
The Taxpayer cannot deduct the personal superannuation contributions made to the Fund in the 2014-15 income year.
Detailed reasoning
A person 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 Income Tax Assessment Act 1997 (ITAA 1997). However, the conditions in sections 290-155, 290-160 (if applicable), 290-165 and 290-170 of the ITAA 1997 must also be satisfied for the person to claim the deduction.
Notice of intent to deduct conditions
Section 290-170 of the ITAA 1997 requires a person to provide a valid notice of their intention to claim the deduction to the trustee of their superannuation fund. The notice must be given before the earlier of:
• the date the person lodges their income tax return for the income year in which the contribution was made; or
• the end of the income year following the year in which the contribution was made.
Under paragraph 290-170(2)(c) of the ITAA1997, a notice will not be valid if, when you gave the notice:
i. you were not a member of the fund; or
ii. the trustee no longer holds the contribution; or
iii. the trustee has begun to pay a superannuation income stream based in whole or part on the contribution.
The Taxpayer has not provided a written notice to the trustee stating their intention to claim a deduction for the relevant contribution, and is not able to do so as they have commenced an allocated pension.
Therefore, section 290-170 of the ITAA 1997 has not been satisfied.
It is not necessary to consider other relevant sections, as each section mentioned in section 290-150 of the ITAA, including section 290-170, must be satisfied
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