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Edited version of private advice
Authorisation Number: 1052052892674
Date of advice: 2 November 2022
Ruling
Subject: Personal superannuation contributions deduction
Question
Are you eligible to claim a personal superannuation contributions deduction (PSCD) under section 290-170 of the Income Tax Assessment Act 1997 (ITAA 1997) for contributions that were transferred to another complying superannuation fund prior you presenting the original superannuation fund with a notice of intent to claim these as your deduction?
Answer
No
This ruling applies for the following period:
ended 30 June 20YY
The scheme commences on:
1 July 20YY
Relevant facts and circumstances
• You were born on DD MM YYYY
• In MM YYYY you made personal contributions to your superannuation fund
• In MM YYYY you rolled over all your superannuation entitlements from your original superannuation fund to a new superannuation fund.
• Prior the roll over you didn't provide your original superannuation fund with notice of intent to notify them of your intent to claim PSCD, nor you received an acknowledgement letter from this fund to acknowledge your intent.
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 290-170
Income Tax Assessment Act 1997 subsection 290-170(1)
Income Tax Assessment Act 1997 section 290-170(2)
Reasons for decision
Summary
You are not eligible to claim the intended PSCD as you didn't meet all requirements prescribed under subsection 290-170(1) of the ITAA 1997.
Detailed reasoning
Section 290-150 of the ITAA 1997 states that you can deduct personal contributions you make in that income year to a complying superannuation fund, for the purpose of providing superannuation benefits for yourself, if you satisfy all conditions in sections 290- 155, 290-165, 290-167, 290-168, 290-169 and 290-170 of the ITAA 1997.
Section 290-155 of the ITAA 1997 requires that the personal contributions are made to an eligible complying superannuation fund.
Section 290-165 of the ITAA 1997 prescribes age-related conditions.
Section 290-167 of the ITAA 1997 prescribes that the contributions are not downsizer contributions.
Section 290-168 of the ITAA 1997 prescribes that the contributions are not re-contributions under the first home super saver scheme.
Section 290-170 of the ITAA 1997 prescribes 'Notice of intent' to deduct conditions.
Subsection 290-170(1) of the ITAA 1997 states that to deduct the contributions, or part of the contributions:
(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.
Subsection 290-170(2) of the ITAA 1997 then states when notice of intent is not considered a valid notice. It states that 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;
(d) before you gave the notice: ...
Based on the provided information you are unable to lodge a valid notice of intent as you didn't give one to your original superannuation provider before you rolled over your superannuation interest to a new provider. Accordingly, you are not eligible to claim PSCD.
The Commissioner of Taxation doesn't have any discretion or administrative authority to change or disregard the prescribed requirements.
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