Private ruling: Deduction on personal superannuation contributions
Date of advice: 23 June 2017
Published: October 2017
Ruling period: Year ending 30 June 2017
Date scheme commenced: 1 July 2016

Ruling: Q1: Is your client entitled to claim a deduction for personal superannuation contributions made during the 2016-17 income year? | A1: Yes.

Relevant facts and circumstances: Your client is a member of a complying self-managed superannuation fund (the SMSF). In the 2016-17 income year your client made contributions to the SMSF. For the 2016-17 income year, your client received income from: ● sale of personally held shares, and ● employment termination payments in relation to employment with your client’s previous employer . Your client’s employment with the previous employer was terminated during the 2015-16 income year. For the 2016-17 income year, your client did not hold an office nor perform any work or other activities that would result in them being treated as an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992 . Your client has provided a valid notice to the trustee of the SMSF stating their intention to claim a deduction for the personal superannuation contributions made in the 2016-17 income year. The notice was duly acknowledged by the trustee of the SMSF. Your client satisfies the age related conditions.


Reasons for decision: Summary: A person can claim a deduction for personal contributions made to a superannuation fund for the purpose of providing superannuation benefits for themselves under section 290-150 of the Income Tax Assessment Act 1997 (ITAA 1997). This section requires the conditions in sections 290-155, 290-160 (if applicable), 290-165 and 290-170 are met before the deduction can be claimed. From the facts your client has satisfied the conditions under sections 290-150, 290-155, 290-165 and 290-170. Further, as your client did not engage in any activities that would make them an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992 in the 2016-17 income year, section 290-160 does not apply to them. Based on the above, your client is entitled to claim a deduction for personal superannuation contributions to be made to the self-managed superannuation fund for the 2016-17 income year. | Detailed Reasoning - This ruling applies for the following period:: Year ending 30 June 2017 | Detailed Reasoning - The scheme commenced on:: 1 July 2016 | Detailed Reasoning - Relevant facts and circumstances: Your client is a member of a complying self-managed superannuation fund (the SMSF). In the 2016-17 income year your client made contributions to the SMSF. For the 2016-17 income year, your client received income from: ● sale of personally held shares, and ● employment termination payments in relation to employment with your client’s previous employer . Your client’s employment with the previous employer was terminated during the 2015-16 income year. For the 2016-17 income year, your client did not hold an office nor perform any work or other activities that would result in them being treated as an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992 . Your client has provided a valid notice to the trustee of the SMSF stating their intention to claim a deduction for the personal superannuation contributions made in the 2016-17 income year. The notice was duly acknowledged by the trustee of the SMSF. Your client satisfies the age related conditions.