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Edited version of private advice
Authorisation Number: 1052061929186
Date of advice: 23 November 2022
Ruling
Subject: Personal superannuation contributions deduction
Question
Are you eligible to claim a personal superannuation contributions deduction (PSCD), under section 290-150 of the Income Tax Assessment Act 1997 (ITAA 1997), if this amount was held in lawyer's trust account instead of being paid to superannuation account due to the delay in a superannuation fund setup?
Answer
No.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commences on:
1 July 20XX
Relevant facts and circumstances
You advised us that no personal contributions were made to a complying superannuation fund in the 20XX-XX income year as the amount that was intended for the deduction was held in lawyer's trust account due to delays in a superannuation fund setup.
Relevant legislative provisions
Income Tax Assessment Act 1997- section 290-150
Income Tax Assessment Act 1997- section 290-155
Reasons for decision
Summary
You are not eligible to claim the intended PSCD as you didn't meet all requirements prescribed under section 290-150 of the ITAA 1997, namely, you didn't make personal contributions in the 2020-21 income year to a complying superannuation fund.
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.
You advised us that you didn't make any personal contributions to a comply superannuation fund in the 2020-21 income year due to delay in a superannuation fund setup.
Accordingly, you are not eligible to claim the PSCD as you failed to comply with requirements prescribed under sections 290-150 and 290-155 of the ITAA 1997. For this reason, there is no need to consider if you also satisfied all conditions in sections 290-155, 290-165, 290-167, 290-168, 290-169 and 290-170 of the ITAA 1997.