Private ruling: Deduction for personal superannuation contributions
Published: October 2011
Ruling period: Year ended 30 June 2010.
Date scheme commenced: 1 July 2009.

Ruling: Q1: Will your client be able to claim a deduction for personal superannuation contributions made in the 2009-10 income year under section 290-150 of the Income Tax Assessment Act (ITAA 1997)? | A1: No.

Relevant facts and circumstances: Your client made a personal superannuation contribution to their nominated superannuation fund during the 2009-10 income year. You state that your client signed a valid notice under section 290-170 of the ITAA 1997 during the 2010-11 income year notifying their nominated superannuation fund of their intention to claim a tax deduction for the contribution. You state that your client's financial adviser, Entity 1, mailed the abovementioned notice to your clients nominated superannuation fund during the 2010-11 income year. Your client's nominated superannuation fund did not provide acknowledgement of receipt of this notice and have since confirmed they have no record of it. Your client's nominated superannuation fund have not processed the contribution as a taxable contribution and have advised they would not amend the contribution to be a deductible contribution. Your client wishes to claim a deduction for the above mentioned contribution in the 2009-10 income year.

Relevant legislative provisions: Section 290-150 of the Income Tax Assessment Act 1997 | Subsection 290-150(1) of the Income Tax Assessment Act 1997 | Subsection 290-150(2) 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(3) of the Income Tax Assessment Act 1997 | Subsection 292-20(2) of the Income Tax (Transitional Provisions) Act 1997 | Section 12 of the Superannuation Guarantee (Administration) Act 1992 | Subsection 12(11) of the Superannuation Guarantee (Administration) Act 1992 | Subsection 357-110(1) Taxation Administration Act 1953

Reasons for decision: Summary: Your client will not be eligible to claim a deduction for the personal superannuation contributions he made to his nominated superannuation fund as not all of the conditions for deductibility were met for the 2009-10 income year. | Detailed Reasoning - 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). However, 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 conditions in section 290-170 have not been met. This will be discussed in further detail below. | Detailed Reasoning - Notice of intent to deduct conditions: Section 290-170 of the ITAA 1997 requires a person to provide a valid notice of their intention to claim the deduction to the trustee of their superannuation fund. The notice must be given before the earlier of: · the date they lodge their income tax return for the income year in which the contribution was made; or · the end of the income year following the year in which the contribution was made. In addition, they must also have been given an acknowledgement of the notice by the trustee of the superannuation fund. A notice will be valid as long as the following conditions apply: · the notice is in respect of the contributions; · the notice is not for an amount covered by a previous notice; · at the time when the notice is given: o they are a member of the fund or the holder of the retirement savings account (RSA); o the trustee or RSA provider holds the contribution (for example, a notice will not be valid if a partial roll-over of the superannuation benefit which includes the contribution covered in the notice has been made); o the trustee or RSA provider has not begun to pay a superannuation income stream based on the contribution; or · before the notice is given: o a contributions splitting application has not been made in relation to the contribution; and; o the trustee or RSA provider to which you made the application has not rejected the application. Your client's superannuation fund did not provide acknowledgment of a valid notice under section 290-170 of the Income Tax Assessment Act 1997 (ITAA 1997) having been lodged with them. Further, the superannuation fund advised they had not processed the contribution as a taxable contribution and that they would not amend the contribution to be a deductible contribution. Consequently, the requirements of section 290-170 of ITAA 1997 have not been met. | Detailed Reasoning - Conclusion:: As not all of the conditions for deductibility under section 290-150 of the ITAA 1997 have been satisfied in relation to the 2009-10 income year, your client is not entitled to claim a deduction for the personal superannuation contributions made to their nominated superannuation fund in the 2009-10 income year.

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