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Edited version of your written advice
Authorisation Number: 1051255880939
Date of advice: 27 July 2017
Ruling
Subject: Deductibility of Personal Super Contributions
Have the requirements under section 290-170 of the Income Tax Assessment Act 1997 (ITAA 1997) for claiming a deduction for personal superannuation contributions been satisfied?
Answer
No
This ruling applies for the following period:
Income year ended 30 June 2016
The scheme commences on:
1 July 2015
Relevant facts and circumstances
The Taxpayer was a member of a superannuation fund (Fund A) and made a personal contribution to this fund, intending to claim a deduction for the contribution made.
Later in the same income year, the Taxpayer rolled over their entire benefit from Fund A to a new fund (Fund B).
The Taxpayer sent a notice of intent to claim a tax deduction (the Notice) to Fund A but did not receive acknowledgment of receipt of the Notice as they were no longer a member of Fund A.
Fund B was unable to provide acknowledgment of receipt of the Notice as the Taxpayer as the Notice was not in respect of a contribution made to Fund B.
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 section 290-165
Income Tax Assessment Act 1997 section 290-170
Reasons for decision
Summary
The Taxpayer did not provide a valid notice of intent to deduct the contribution and did not receive acknowledgment of receipt of the notice. Hence, a deduction for the contribution cannot be claimed as the requirements under section 290-170 of the ITAA 1997 have not all been met.
Detailed reasoning
Personal superannuation contributions deductible
An individual 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 ITAA 1997, provided certain conditions are met.
Subsection 290-150(2) of the ITAA 1997 provides that the conditions in sections 290-155, 290-160 (if applicable), 290-165 and 290-170 of the ITAA 1997 must all be satisfied before the person can claim a deduction for the contributions made in that income year.
Notice of intent to deduct conditions
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.
(2) The notice is not valid if at least one of these conditions is satisfied:
(a) the notice is not in respect of the contribution;
(b) the notice includes all or a part of an amount covered by a previous notice;
(c) when you gave the notice:
(i) you were not a member of the fund or the holder of the RSA; or
(ii) the trustee or RSA provider no longer holds the contribution; or
(iii) the trustee or RSA provider has begun to pay a superannuation income stream based in whole or part on the contribution;.
As such, in order to deduct the contribution, the trustee of Fund A must be given a valid notice in the approved form of the Taxpayer’s intention to claim the deduction.
Subparagraph 290-170(2)(c)(i) of the ITAA 1997 states that a notice will not be valid if, when a person gives the notice, they are not a member of the fund.
Hence, the Taxpayer will not be able to claim a deduction for the contribution made to Fund A as they did not provide a valid notice of intent to deduct the contribution and did not receive acknowledgment of receipt of the notice.
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