Private ruling: Personal superannuation contribution deduction
Date of advice: 15 August 2024
Published: 23 September 2024
Ruling period: Income year ending 30 June 20YY | Income year ending 30 June 20YY
Date scheme commenced: 1 July 20YY

Ruling: Q1: Can the taxpayer claim a deduction for personal superannuation contributions made for the years ended 30 June 20YY and 30 June 20YY under section 290-150 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No.

Relevant facts and circumstances: The Taxpayer paid the following amounts to a complying superannuation fund for the 20YY-YY and 20YY-YY income years: • 30 June 20YY $******* • 24 June 20YY $******* • 30 June 20YY $******* The Taxpayer signed a ''Notice of intent to claim or vary a deduction for personal super contributions'' (Notice of Intent) form for the 20YY-YY and 20YY-YY income years on DD MM YYYY and DD MM YYYY respectively. During the 20YY-YY and 20YY-YY income years, the Taxpayer's prior accountant's health was poor. The accountant exhibited extreme stress which culminated in a severe and major surgery. The Taxpayer was informed by the accountant in their meetings that the Notice of Intent forms would be sent to their superannuation fund. The accountant's poor health in the 18 months had led to a major health incident. His extremely slow recovery resulted in him being unfit to oversee his client affairs. As a result, the Notice of Intent form had not been lodged with the superannuation fund. The superannuation fund has treated the personal superannuation payments made during the 20YY-YY and 20YY-YY income years as non-concessional contributions. The Taxpayer lodged their tax returns for the 20YY-YY income year on DD MM YYYY and for the 20YY-YY income year on DD MM YYYY.

Relevant legislative provisions: Income Tax Assessment Act 1997 Section 290-150 | 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, according to subsection 290-150(2) of the ITAA 1997 all conditions in sections 290-155, 290-165, 290-167, 290-168, 290-169 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 - superannuation deduction: To claim a deduction for personal superannuation contributions under subsection 290-170(1), 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. The Taxpayer's tax return for the 20YY-YY income year was lodged on DD MM YYYY, and for the 20YY-YY income year, it was lodged on DD MM YYYY. A valid Notice of Intent has not been sent to the superannuation fund. This means that the Taxpayer failed to provide a valid Notice of Intent by DD MM YYYY for the 20YY-YY income year and by DD MM YYYY for the 20YY-YY income year, when the income tax returns were lodged. The Taxpayer also failed to provide a valid Notice of Intent to their superannuation fund by the end of the income years following the 20YY-YY and 20YY-YY income years when the contributions was made. As the conditions under subsection 290-170(1) have not been satisfied, section 290-150 of the ITAA 1997 does not apply. The Commissioner has no discretion under the ITAA 1997 to allow a personal superannuation contributions deduction. The Taxpayer, therefore, cannot claim a personal superannuation contributions deduction for the contributions made in the 20YY-YY and 20YY-YY income years.