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 superannuation activities include amounts in the following 9 categories.

Exclusion of personal contributions

A complying fund (including a successor fund) can deduct an amount for personal contributions to the extent the personal contributions have been reduced by a notice under section 290-180 of the ITAA 1997 if:

• that variation notice was received by the fund after it had lodged its income tax return for the income year that included the contribution as assessable income, and
• the fund has not exercised its option (under subsection 295-195(3) or 295-197(4) of the ITAA 1997) to amend the return for the income year that included the contribution as assessable income.

If the notice is received after the fund has lodged its tax return for the income year in which the contributions were made, and the fund is unable to utilise the deduction fully in the income year in which the notice is received, (for example, if that year’s taxable income is less than the deduction), the fund may choose to amend the assessment of the earlier income year in which the contribution was made to exclude the amount from its assessable income (subsections 295-195(2) and (3) and 295-197(3) and (4) of the ITAA 1997).

A successor fund is also entitled to a deduction to the extent the contributor’s personal contributions have been reduced by a notice given to the successor fund under section 290-180 of the ITAA 1997 and the original fund has included the contribution amount in its assessable income (subsection 295-490(1) of the ITAA 1997).

Deductible TOFA losses or deductible TOFA balancing adjustment

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
• Section C: Deductions – R Foreign exchange losses
• Section B: Income – D Net foreign income. 

If what you show at L includes an amount brought to account under the TOFA rules, also complete item 16 Taxation of financial arrangements (TOFA).

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.

A contribution made for an employee to a complying superannuation fund is not a fringe benefit.

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 this is 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 contributing 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 resulting from an earning activity, or the site of an earning activity, or
• treating, cleaning up, removing or storing waste resulting from an earning activity, or the site of an earning activity.

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.

Deduction relating to listed investment company (LIC) capital gain amount

A LIC can pay a dividend to a superannuation entity that includes a LIC capital gain amount which is shown in the LIC’s dividend statement.

The complying superannuation entity can claim a deduction of 33 1/3 % of that LIC capital gain amount.

An Australian resident non-complying superannuation fund that is a trust can claim a deduction of one-half of that 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 that is covered by section 23AI or 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 5 that best describes the largest amount written at L Other deductions.

You cannot claim a deduction against the assessable income of the fund for superannuation benefits paid.

There is no provision for funds to transfer or pass on deductions to other entities (for example, life insurance companies or PSTs).

Table 5: Other deduction codes

Code	Other deductions in respect of:
C	Exclusion of personal contributions
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 amounts
E	Environmental protection activities (EPA) expenditure
I	Deduction relating to 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