Edited version of private advice

Authorisation Number: 5010111729592

Date of advice: 02 April 2025

Ruling

Subject: Personal superannuation contribution deduction

Question 1

Are you eligible to claim a personal superannuation contributions deduction (PSCD) under section 290-170 of the Income Tax Assessment Act 1997 (ITAA 1997) despite not having a valid acknowledgement letter prior to the lodgement of your Income Tax Return in the 20XX -XX financial year.

Answer 1

No.

This ruling applies for the following period:

1 July 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

•                In the 20XX-XX income year, the taxpayer made a non-concessional contribution of $XX,XXX.XX with the intent to claim a personal superannuation contribution deduction (PSCD).

•                The notice of intent (NOI) to claim a personal superannuation contribution deduction was sent to the fund on 30 October 20XX, however it was not dated.

•                The NOI was received by the fund on 8 November 20XX.

•                The superfund rejected the NOI as it was not valid due to not being dated.

•                On 15 November 20XX, a letter was sent to the taxpayer by the superfund requesting the taxpayer complete a new NOI.

•                On 21 November 20XX the taxpayer's annual tax return was lodged without a valid notice of intent to claim being acknowledged by the superfund.

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 290-170

Reasons for decision

Under section 290-150 of the ITAA 1997 a person can claim a deduction for personal contributions made to their superannuation fund for the purpose of providing superannuation benefit to themselves.

However, subsection 290-150(2) of the ITAA 1997 states that all of the conditions in sections 290-155, 290-165 and 290-170 of the ITAA 1997 must be satisfied before a deduction can be claimed for contributions made in that income year.

Subsection 290-170(1) of the ITAA 1997 states:

To deduct the contribution, or a part of the contribution:

(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.

In the taxpayer's situation, the NOI was provided to the fund, however, it was not valid and, therefore, it was not accepted. During this time, the taxpayer's tax return was lodged without a valid NOI.

Paragraph 263 of Taxation Ruling 2010/1 Income Tax: superannuation contributions (TR 2010/1) states that a person who intends to deduct their personal superannuation contributions must give the superannuation provider a valid notice in the approved form before lodging their income tax return for the year (or within 12 months of the end of the income year if they have not lodged their return by that time). The trustee must also acknowledge receipt of the notice.

Based on the information provided, the taxpayer did not have a valid notice of intent to claim a personal super contribution deduction when their income tax return was lodged.

Accordingly, the taxpayer is not eligible to claim a PSCD for the $XX,XXX.XX contribution made in 20XX-XX income year.

The Commissioner of Taxation does not have any discretion or administrative authority to change or disregard the prescribed requirement.