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Edited version of private advice
Authorisation Number: 1051756432255
Date of advice: 29 September 2020
Ruling
Subject: Deductibility of personal superannuation contributions
Question
Is the taxpayer entitled to claim a deduction for personal superannuation contributions made to their superannuation fund during the 20XX-XX 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 ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
The taxpayer's superannuation fund ("Fund A") is considered to be a complying superannuation fund.
During the 20XX-XX income year, the taxpayer contributed towards Fund A.
In early July 20XX, the taxpayer lodged their individual tax return for the 20XX-XX income year.
In mid-July 20XX, the taxpayer submitted an approved 'Notice of intent to claim or vary a deduction for personal superannuation contributions' form ("the Notice of Intent") to the trustee of Fund A ("the Trustee").
In early August 20XX, the trustee of Fund A acknowledged the receipt of the notice the taxpayer submitted to them on 17 July 20XX.
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 290-167.
Income Tax Assessment Act 1997section 290-168.
Income Tax Assessment Act 1997section 290-170.
Income Tax Assessment Act 1997 section 995-1
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, 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 20XX-XX income year in which they made their contribution or the 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 Fund A during the 20XX-XX income year.