Private ruling: Superannuation administration costs
Published: January 2013
Ruling period: Year ended 30 June 2012
Date scheme commenced: 1 July 2011

Ruling: Q1: Can your self-managed superfund claim a deduction for administration expenses incurred in your (the trustee's) commercial superannuation account, which resulted from your commercial superannuation fund not rolling over your assets into your self-managed superfund, as requested? | A1: No.

Relevant facts and circumstances: You sought to have your assets rolled over from a commercial superfund to your self-managed superfund. Only some of the funds were rolled over. The total funds have now been rolled over but you were charged further (but ordinary) administrations costs for the additional time your assets were under the administration of the commercial superfund.

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 or 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 97/7, which explains the meaning of 'incurred' for the purposes of section 8-1, states, as a broad guide, you incur an outgoing at the time you owe a present money debt that you cannot escape. In your case, your self-managed superfund did not incur any administrations costs in relation to your commercial superannuation account. Therefore, your self-managed superfund is unable to claim a deduction for these administration costs.

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