Private ruling: Personal superannuation contributions
Date of advice: 15 March 2018
Published: June 2018
Ruling period: Income year ended 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Can the Client claim a deduction under section 290-150 of the Income Tax Assessment Act 1997 (ITAA 1997) for contributions made to the Fund? | A1: No

Relevant facts and circumstances: ● On D D MMM YYYY, the Client made a personal superannuation contribution to the Fund. ● The Fund is a complying superannuation fund. ● At the time the contribution was made, the Client was XX years of age. ● When the Client made the relevant contribution, the Fund was mistakenly advised that it was a salary sacrifice contribution rather than a personal contribution. ● Subsequently, the Client commenced to receive a superannuation income stream from the Fund. ● After the Fund commenced to pay an income stream to the Client, the Client contacted the Fund to advise that the contribution was meant to be made as a personal contribution and not as a salary sacrifice contribution and requested the Fund to amend their reporting accordingly. ● The Client further advised the Fund that they intended to claim a deduction for the contribution and requested the Fund acknowledge their notice of intent to deduct the contribution. ● The Fund advised the Client that their notice of intent is not valid because the Fund has commenced to pay a superannuation income stream to the Client which is based on the contribution. ● The Client has previously ceased all employment.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 290-150 | Income Tax Assessment Act 1997 Subsection 290-150(2) | Income Tax Assessment Act 1997 Section 290-155 | Income Tax Assessment Act 1997 Subsection 290-160 | Income Tax Assessment Act 1997 Section 290-170 | Income Tax Assessment Act 1997 Subsection 290-170(2) | Income Tax Assessment Act 1997 Subsection 290-170(3)

Reasons for decision: Detailed Reasoning - Personal superannuation contributions for the 2017 income year: ● In accordance with section 290-150 of the ITAA 1997, a person can claim a deduction for personal contributions they made to a superannuation fund for the purpose of providing superannuation benefits for themselves, (or their dependants after their death). ● However, the conditions in sections 290-155, 290-160 (if applicable), 290-165 and 290-170 of the ITAA 1997 must also be satisfied for the person to claim the deduction. ● Specifically, section 290-170 of the ITAA 1997 states that in order to deduct the contribution, or a part of it, a person must give to the trustee of the fund a valid notice (in the approved form) of their intention to claim a deduction. The trustee of the fund must then, without delay, give the person an acknowledgment of a valid notice. ● Subsection 290-170(2) list the circumstances when a notice of intent to deduct a contribution is not valid , and relevantly states that a notice is not valid if the trustee has begun to pay a superannuation income stream based, in whole or in part, on the contribution. ● Based on the above, the Client cannot give to the trustee of the Fund a valid notice as required by subsection 290-170(2) of the ITAA 1997. This is because the trustee of the Fund has commenced to pay a superannuation income stream to the Client which is based on the relevant contribution. It follows then, that the trustee of the Fund cannot give to the Client an acknowledgement of a valid notice as required by subsection 290-170(3) of the ITAA 1997. ● Therefore, the Client cannot claim a deduction for the relevant contribution because they do not satisfy the conditions set out in section 290-170 of the ITAA 1997.