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Edited version of private advice

Authorisation Number: 1051533664553

Date of advice: 11 July 2019

Ruling

Subject: Deductibility of personal superannuation contributions

Question

Is the taxpayer entitled to claim a deduction for personal superannuation contributions made to Fund A during the 2017-18 income year under section 290-150 of the Income Tax Assessment Act 1997 (ITAA 1997)?

Answer

No

This ruling applies for the following period:

Year ended 30 June 2018

The scheme commenced on:

1 July 2017

Relevant facts and circumstances

During the course of the 2018 financial year, the taxpayer made a series of superannuation contributions to Fund A totalling less than $10,000, with the last of these contributions made on X January 2018.

In February 2018, the taxpayer rolled their entire superannuation fund balance from Fund A into Fund B.

Both Fund A and Fund B are complying Australian superannuation funds.

The taxpayer has not yet lodged their tax return for the 2017-18 income year.

Relevant legislative provisions

Income Tax Assessment Act 1997section 290-150.

Income Tax Assessment Act 1997section 290-155.

Income Tax Assessment Act 1997section 290-165.

Income Tax Assessment Act 1997section 290-170.

Reasons for decision

A person can claim a deduction for personal contributions made to their superannuation fund for the purpose of providing superannuation benefits to themselves under section 290-150 of the ITAA 1997.

However, subsection 290-150(2) of the ITAA 1997 states that all of the conditions in sections 290-155, 290-165 and 290-170 must be satisfied before the person can claim a deduction for contributions made in that income year.

Notice of intent to deduct conditions

Relevantly, subsection 290-170(1) states that in order to claim a deduction for personal superannuation contributions, a person must provide a valid Notice of Intent to the trustee of their superannuation fund by the earlier of:

·         the date on which you lodged your individual tax return for the income year in which the contribution was made; or

·         the end of the income year following the income year in which the contribution was made.

Subparagraph 290-170(2) of the ITAA 1997 outlines when the notice is not valid. Amongst other things, it includes situations where;

·         You were not a member of the fund......

·         The trustee or RSA no longer holds the contribution......

In this taxpayer's situation, they were no longer a member of Fund A after the rollover in February 2018. Consequently they could not lodge a valid notice of intent with them.

Further, if a notice of intent was to be lodged with Fund B it could only include the amount if they met the definition of a 'successor fund' of Fund A.

The legislation around deductions for personal superannuation contributions is quite specific and only allows a deduction where all of the necessary requirements have been met. It does not contain a discretion that can be exercised by the Commissioner where a valid notice has not been provided.

Accordingly, the taxpayer is not able to claim a deduction on the contribution they made to Fund A during the 2017-18 income year.

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