Private ruling: Deductions - application and management fees
Date of advice: 3 March 2016
Published: April 2016
Ruling period: Year ended 30 June 2016 | Year ended 30 June 2015 | Year ended 30 June 2014 | Year ended 30 June 2013 | Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Question and answer: | Are you entitled to a deduction for management fees associated with your superannuation fund account? | No.


Relevant legislative provisions: Income Tax Assessment Act 1997 Section 8-1.

Reasons for decision: Summary: 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. Taxation Ruling TR 93/17 Income tax: income tax deductions available to superannuation funds sets out the Commissioner's view on the income tax deductions that are available to superannuation funds. Paragraph 4 of TR 93/17 specifically states that administrative costs incurred in managing the fund are deductible by the superannuation fund. In your case you have an account with a superannuation fund. You are the beneficial owner of the assets held in this account. The superannuation fund's trustee is the legal owner of the assets of the fund. The application and management fees as set out on your annual statements have been incurred by the superannuation fund's trustee and not by you. The superannuation fund is taxed on income earned on its investments, and the application and management fees, which are incurred by the fund in earning its assessable income, can only be claimed as a deduction by the fund. Therefore, as the expenses have been incurred by the fund and not by you, you cannot claim a deduction in your income tax return for application and management fees relating to your superannuation fund account. | Detailed Reasoning - Note: It is noted that you asked for the private ruling to apply for the 2007 - 2016 income years. The Commissioner does not rule for indefinite or extended periods. Therefore, we have only ruled for the 2016 to 2012 income years (the current financial year and 4 prior years).

Relevant facts: You have a superannuation fund account. | The annual superannuation statements you receive show management fees and application fees paid in relation to your account.