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Edited version of private advice
Authorisation Number: 1051622230318
Date of advice: 18 December 2019
Ruling
Subject: Deductions
Question
Are monies paid to the Country Z authorities as contributions to an insurance scheme an allowable deduction?
Answer
No
This ruling applies for the following period:
Year ended 30 June 2019
The scheme commences on:
1 July 2018
Relevant facts and circumstances
Early 20XX you paid $XXXX to the Country Z authority.
The payment was a contribution to an insurance scheme.
The payment will increase the amount of foreign pension you may eligible for in the future.
Relevant legislative provisions
Income Tax Assessment Act 1997 Section 8-1
Reasons for decision
Section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997) allows a deduction for all losses and outgoings to the extent to which they are incurred in gaining or producing assessable income, except where the outgoings are of a capital, private or domestic nature, or relate to the earning of exempt income.
In your case, you have made a voluntary contribution to the Country Z insurance scheme.
This amount is not an expense you have incurred in the course of gaining or producing your assessable salary and wage income, but rather was voluntary amount paid in order to increase the amount of Country Z pension that you may be eligible to receive.
Therefore, you are not entitled to a deduction for the amount paid to the Country Z insurance scheme.