L Other deductions

Show at L the total amount of all other deductions that do not fall into any of the other categories shown in section C Deductions.

Deductions that are specifically allowable for your superannuation activities include amounts in the following 10 categories.

Exclusion of personal contributions

A complying fund can deduct an amount of personal contributions, to the extent the contributor's deduction for personal contributions has been reduced by a notice under section 290-180 of the ITAA 1997.

Generally, the deduction is allowed in the year in which the notice is received. However, if the notice is received after the fund has lodged its tax return and the fund is unable to utilise the deduction fully in the year in which the notice is received (for example, if that year's taxable income is exceeded by the deduction, or the fund would lose the benefit of franking credits), the fund can amend the assessment of the earlier year in which the contribution was made (subsection 295-195(3) of the ITAA 1997).

Forex losses

Show at L  any deductible foreign exchange losses made by the fund that have not been included at any other category. See Foreign exchange (Forex) gains and losses.

TOFA amounts from financial arrangements

If the TOFA rules apply to calculate an assessable gain or deductible loss on the fund's financial arrangements include at L any deductible losses and any deductible TOFA transitional balancing adjustment relating to existing financial arrangements.

TOFA amounts that have been included elsewhere should not be included here. For example, amounts that have already been included at:

• Section C: Deductions - A Interest expenses within Australia
• Section C: Deductions - B Interest expenses overseas, or
• Section B: Income - D Net foreign income.

 

For more information, see Guide to the taxation of financial arrangements (TOFA) rules.

Contribution that is a fringe benefit

A superannuation entity can claim a deduction for an amount included in its assessable income that is a fringe benefit because it will be taxed as a fringe benefit in the hands of the contributor. The amount can be deducted in the income year in which the contribution is included in assessable income.

Return of contributions by non-complying funds

A superannuation fund that has been non-complying since 1 July 1988, or since it was established if later, can deduct an amount which it returns to the entity which had paid the amount to it, provided the contributing entity includes the amount in its assessable income under section 290-100 of the ITAA 1997. The amount can be deducted in the income year in which it is included in the entity's assessable income.

Deductible balancing adjustment amounts

If the fund ceases to hold or to use a depreciating asset, it will need to calculate a balancing adjustment amount to include in its assessable income or to claim as a deduction.

Environmental protection activities (EPA) expenditure

A deduction is allowed (under section 40-755 of the ITAA 1997) for certain capital expenditure incurred for the sole or dominant purpose of:

• preventing, fighting or remedying pollution of the environment, or
• treating, cleaning up, removing or storing waste.

Expenditure that forms part of the cost of a depreciating asset is not deductible as expenditure on EPA if a deduction is available for the decline in value of the asset.

 

Listed investment company (LIC) capital gain amount

A LIC can pay a dividend which includes a LIC capital gain amount to a complying superannuation entity. The complying superannuation entity can claim a deduction of 33 1/3 % of that LIC capital gain amount. The LIC's dividend statement shows the LIC capital gain amount.

An Australian resident non-complying superannuation fund that is a trust can claim a deduction of 50% of that LIC capital gain amount. The LIC's dividend statement shows the LIC capital gain amount.

Deduction relating to foreign non-assessable non-exempt income

Certain expenses relating to foreign non-assessable non-exempt income are allowable deductions against the fund's assessable income if the expenses incurred are a cost in relation to certain debt interests (see section 25-90 of the ITAA 1997, or subsection 230-15(3) of the ITAA 1997 for a debt interest that is a financial arrangement covered by the TOFA rules). For superannuation funds, the relevant non-assessable, non-exempt income is foreign source income exempt from income tax under sections 23AI and 23AK of the ITAA 1936.

These deductions should not be applied against D1 Gross foreign income at item 10 for the purpose of calculating D Net foreign income or a foreign loss.

Superannuation (Financial assistance funding) Levy Act 1993

Levies imposed by regulations under section 6 of the Superannuation (Financial Assistance Funding) Levy Act 1993 can be deducted by regulated superannuation funds and ADFs in the year in which the levy is incurred.

Print in the Code box the code from table 6 that best describes the greatest amount written at L Other deductions.

Table 6: Other deduction codes

Code	Other deductions in respect of:
C	Exclusion of personal contributions
F	Forex losses
T	Deductible TOFA losses or deductible TOFA balancing adjustment
B	Contribution that is a fringe benefit
R	Return of contributions by non-complying funds
A	Deductible balancing adjustment
E	Environmental protection activities (EPA) expenditure
I	LIC capital gain amount
N	Deduction relating to foreign non-assessable non-exempt income
S	Superannuation (Financial Assistance Funding) Levy Act 1993
O	Other deductions not listed above