Edited version of private advice

Authorisation Number: 1052268337540

Date of advice: 22 July 2024

Ruling

Subject: Eligibility for a personal superannuation contributions deduction

Question

Are you eligible to claim a personal superannuation contributions deduction (PSCD) under section 290-170 of the Income Tax Assessment Act 1997 (ITAA 1997) for contributions, in circumstances where the 'Notice of Intent' to claim a deduction for the contributions was not given to your superannuation fund within the prescribed time limits?

Answer

No.

This ruling applies for the following period:

1 July 20XX to 30 June 20XX

The scheme commenced on:

1 July 20XX

Relevant facts and circumstances

In June 20XX, you made personal contribution of $XXX to your superfund (XXX)

In October 20XX, you lodged a 'Notice of Intent to claim a tax deduction for personal super contributions'

You stated on your personal statement that due to personal circumstances (health issues, going through a divorce at that time and job security impacted by Covid-19), you were unable to lodge the application on time

You made multiple contacts to XXX on 4 November 20XX, 10 November 20XX and 17 November 20X respectively explaining your situation

You advised that your accountant fully understood and supported your position and that they had other clients with other super funds that missed the notice of intent to claim deadline and were approved by their super fund

You stated that you were aware of the legislation around the contributions and timings for the deadline to claim

You advised that your ATO contact advised you that they understood your situation and they suggested to apply for a private ruling

You were made redundant XX months ago and are currently still without an income

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 290-170

Income Tax Assessment Act 1997 subsection 290-170 (1)

Reasons for decision

Summary

You are not eligible to claim the intended personal superannuation contribution deductions (PSCD) as you did not meet all requirements prescribed under subsection 290-170(1) of the Income Tax Assessment Act 1997 (ITAA 1997).

Detailed reasoning

Section 290-150 of the Income Tax Assessment Act 1997 (ITAA 1997) states that you can deduct personal contributions you make in that income year to a complying superannuation fund, for the purpose of providing superannuation benefits for yourself, or if you satisfy all conditions in sections 290-155, 290-165, 290-167 and 290-170 of the ITAA 1997

Section 290-155 of the ITAA 1997 requires that the personal contributions are made to an eligible complying superannuation fund.

Section 290-165 of the ITAA 1997 prescribes age-related conditions.

Section 290-167 of the ITAA 1997 prescribes that the contributions are not downsizer contributions.

Section 290-170 of the ITAA 1997 prescribes 'Notice of Intent' to deduct contributions.

Subsection 290-170(1) of the ITAA 1997 states that to deduct the contribution, or part of the contributions:

a)            you must give to the trustee of the fund or the RSA provider a valid notice, in the approved form, of your intention to claim the deduction; and

b)            the notice must be given before:

              i.     if you have lodged your 'income tax return for the income year in which the contribution was made on a day before the end of the next income year - the end of the day; or

              ii.     otherwise - the end of the net income year; and

c)            the trustee or provider must have given you an acknowledgement of receipt of the notice

Based on the information you have provided, you were unable to lodge the notice of intent by the deadline date due to personal circumstances.

Accordingly, you are not eligible to claim personal superannuation contribution deductions (PSCD) for the $XXX contributed in June 20XX.

The Commissioner of Taxation does not have any discretion or administrative authority to change or disregard the prescribed requirement.

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