Edited version of private advice

Authorisation Number: 1052088820148

Date of advice: 20 February 2023

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 20XX-XX income year under section 290-150 of the Income Tax Assessment Act 1997?

Answer

No.

This ruling applies for the following period:

Year ended 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

During the 20XX income year, the taxpayer made a super contribution to Fund A.

The taxpayer rolled their entire superannuation fund balance from Fund A into Fund B during the income year and closed their superannuation account with Fund A.

The taxpayer has not yet lodged their income tax return for the 20XX-XX 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 290-169

Income Tax Assessment Act 1997 section 290-170

Reasons for decision

Detailed reasoning

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, 290-169 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) of the ITAA 1997 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.

Paragraph 290-170(2)(c) of the ITAA 1997 outlines when the notice is not valid. Amongst other things, it includes when you gave the notice:

•         you were not a member of the fund......

•         the trustee or RSA no longer holds the contribution ......

In your situation, you were no longer a member of Fund A after the rollover in September 2022. Consequently, you could not lodge a valid notice with them.

Further, if a notice of intent was to be lodged with Fund B it could only include the $XXXX 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 for the contributions they made to Fund A during the 20XX-XX income year.

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