Edited version of private advice

Authorisation Number: 1051909071246

Date of advice: 22 October 2021

Ruling

Subject: Deductibility of personal superannuation contributions

Question

Is the taxpayer entitled to claim a deduction for personal superannuation contributions made to the Fund during the 2019-20 income year under section 290-150 of the Income Tax Assessment Act 1997 ("ITAA 1997")?

Answer

No

This ruling applies for the following period:

Income year ending 30 June 2020.

The scheme commences on:

1 July 2019.

Relevant facts and circumstances

The taxpayer's superannuation fund (the Fund) is a complying superannuation fund

During the 2019-20 income year, the taxpayer advised that they made a contribution to the Fund.

During the 2020-21 income year, you advised that you and the Taxpayer were experiencing unforeseen difficult personal circumstances.

In early July 2021, the taxpayer submitted a 'Notice of intent to claim or vary a deduction for personal superannuation contributions' form ("the Notice of Intent") to the trustee of the Fund.

In early September 2021, the taxpayer lodged their individual tax return for the 2019-20 income year.

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 290-165

Income Tax Assessment Act 1997 Section 290-167

Income Tax Assessment Act 1997 Section 290-168

Income Tax Assessment Act 1997 Section 290-170

Reasons for decision

Summary

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, 290-167, 290-168 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

In this case, the taxpayer des not satisfy this condition although they submitted a valid Notice of Intent to the Trustee. This is because the taxpayer did not provide the Notice of Intent to the Trustee by the earlier of the:

•         date when they lodged their individual tax return for the 2019-20 income year in which they made their contribution; or

•         end of the income year following the income year in which they made their contribution.

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 Notice of Intent has been provided outside the required timeframe.

Accordingly, the taxpayer is not able to claim a deduction for the contributions they made to the Fund during the 2019-20 income year.

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