Private ruling: Deductibility of personal superannuation contributions
Date of advice: 11 July 2019
Published: September 2019
Ruling period: Year ended 30 June 2018
Date scheme commenced: 1 July 2017

Ruling: Q1: Is the taxpayer entitled to claim a deduction for personal superannuation contributions made to Fund A during the 2017-18 income year under section 290-150 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No

Relevant facts and circumstances: During the course of the 2018 financial year, the taxpayer made a series of superannuation contributions to Fund A totalling less than $10,000, with the last of these contributions made on X January 2018. In February 2018, the taxpayer rolled their entire superannuation fund balance from Fund A into Fund B. Both Fund A and Fund B are complying Australian superannuation funds. The taxpayer has not yet lodged their tax return for the 2017-18 income year.

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: Summary: 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 and 290-170 must be satisfied before the person can claim a deduction for contributions made in that income year. | Detailed Reasoning - 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. Subparagraph 290-170(2) of the ITAA 1997 outlines when the notice is not valid. Amongst other things, it includes situations where; · You were not a member of the fund...... · The trustee or RSA no longer holds the contribution...... In this taxpayer's situation, they were no longer a member of Fund A after the rollover in February 2018. Consequently they could not lodge a valid notice of intent with them. Further, if a notice of intent was to be lodged with Fund B it could only include the amount if they met the definition of a 'successor fund' of Fund A. 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 valid notice has not been provided. Accordingly, the taxpayer is not able to claim a deduction on the contribution they made to Fund A during the 2017-18 income year.