Private ruling: Deduction for personal superannuation contributions
Date of advice: 27 September 2018
Published: November 2018
Ruling period: Year ended 30 June 20XX
Date scheme commenced: 1 July 20XX

Ruling: Q1: Will the Taxpayer be able to claim a deduction for personal superannuation contributions in the 20XX-XX income year under section 290-150 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No

Relevant facts and circumstances: The Taxpayer and another taxpayer are members of a complying self-managed superannuation fund. The Taxpayer provided the Notice of Intent to Claim and received the Confirmation of Receipt In the 20XX-XX income year. The Taxpayer made a personal superannuation contribution in the 20XX-XX year. The Taxpayer states having forgotten to transfer the amount by the end of the 20XX-XX income year due to health issues. The Taxpayer requests the Commissioner’s discretion to claim a deduction for the abovementioned contribution in the 20XX-XX income year.

Relevant legislative provisions: Section 290-150 of the Income Tax Assessment Act 1997 | Subsection 290-150(3) of the Income Tax Assessment Act 1997 | Section 290-155 of the Income Tax Assessment Act 1997 | Section 290-160 of the Income Tax Assessment Act 1997 | Section 290-165 of the Income Tax Assessment Act 1997 | Section 290-170 of the Income Tax Assessment Act 1997 | Subsection 290-170(1) of the Income Tax Assessment Act 1997 | Subsection 290-170(2) of the Income Tax Assessment Act 1997 | Summary | The Taxpayer will not be eligible to claim a deduction for the personal superannuation contributions made to their nominated superannuation fund as not all of the conditions for deductibility were met for the 20XX-XX income year.

Reasons for decision: Detailed Reasoning - Personal deductible superannuation contributions:: A person can claim a deduction for personal contributions made to a superannuation fund for the purpose of providing superannuation benefits for themselves,(or their dependants after their death) under section 290 150 of the Income Tax Assessment Act 1997 (ITAA 1997). Subsection 290-150(3) of the ITAA 1997 states: You can deduct the contribution only for the income year in which you made the contribution (emphasis added) Further, the conditions in sections 290-155, 290-160, 290-165 and 290-170 of the ITAA 1997 must also be satisfied for the person to claim the deduction. According to the facts the Taxpayer is not entitled to claim a deduction in the 20XX-XX income year for the personal superannuation contributions made to the Fund in 20XX-XX income year as a person can deduct the contribution only for the income year in which the contribution was made. Notwithstanding the above, the facts also show that the ‘Notice of intent to deduct conditions’ (section 290-170 of the ITAA 1997) was not satisfied as the Notice was not valid. In subsection 290-170(2) of the ITAA 1997, which deals with validity of notices, it states: The notice is not valid if at least one of these conditions is satisfied: (a) the notice is not in respect of the contribution. As the Notice was made for an income year (the 20XX-XX income year) in which no contribution was made it follows that the Notice was not valid for that income year. In relation to the contribution not being made in the 20XX-XX income year due to the Taxpayer’s ill health, and a request that a deduction for the contribution be allowed in that year, it should be noted there is no discretion available for whatever reason within the deduction for personal contribution provisions to treat a contribution made in a future income year as a deduction for a prior income year.