Private ruling: Deductibility of personal superannuation contributions
Date of advice: 22 October 2021
Published: January 2022
Ruling period: Income year ending 30 June 2020.
Date scheme commenced: 1 July 2019.

Ruling: Q1: Is the taxpayer entitled to claim a deduction for personal superannuation contributions made to the Fund during the 2019-20 income year under section 290-150 of the Income Tax Assessment Act 1997 ("ITAA 1997")? | A1: No

Relevant facts and circumstances: The taxpayer's superannuation fund (the Fund) is a complying superannuation fund During the 2019-20 income year, the taxpayer advised that they made a contribution to the Fund. During the 2020-21 income year, you advised that you and the Taxpayer were experiencing unforeseen difficult personal circumstances. In early July 2021, the taxpayer submitted a 'Notice of intent to claim or vary a deduction for personal superannuation contributions' form ("the Notice of Intent") to the trustee of the Fund. In early September 2021, the taxpayer lodged their individual tax return for the 2019-20 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 290-167 | Income Tax Assessment Act 1997 Section 290-168 | 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, 290-167, 290-168 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 In this case, the taxpayer des not satisfy this condition although they submitted a valid Notice of Intent to the Trustee. This is because the taxpayer did not provide the Notice of Intent to the Trustee by the earlier of the: • date when they lodged their individual tax return for the 2019-20 income year in which they made their contribution; or • end of the income year following the income year in which they made their contribution. 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 Notice of Intent has been provided outside the required timeframe. Accordingly, the taxpayer is not able to claim a deduction for the contributions they made to the Fund during the 2019-20 income year.