The AAT has ruled that a taxpayer was not eligible to claim tax deduction for personal superannuation contributions for 2018/19 as a result of his failure to submit an eligible notice of intent (NOI) claim within the required time limits, as required by section 290-170(1) of the ITAA 1997.
This serves as an important reminder that individuals must provide a valid NOI to their relevant superannuation fund within the required times frames in order to prevent missing out on tax deduction.
Claiming a tax deduction on superannuation contributions is not as easy as you think. In order to be eligible to claim tax deductions, we have specified the important conditions which must be met. These include:
- The individual must be eligible to contribute to superannuation. For more information click here
- Eligible contributions must be received by the individual’s superannuation fund in the same financial year it is intended to be claimed.
- A valid ‘notice of intent’ (NOI) must be sent to trustee to claim form (Section 290-170 form)
- Any NOI must be received by the trustee in writing before the end of the financial year that follows the financial year in which the contribution was made.
- The trustee must formally acknowledge that the contributions are eligible to be claimed.
What can make a NOI invalid?
A notice which includes all or part of an amount that is covered by a previous notice will be considered invalid.
It may also be considered invalid when the individual submits a notice that:
- The individual has split contribution with their spouse.
- The trustee no longer holds the contribution.
- They were not the member of the superannuation fund.
How can you apply?
There are three types of forms that can be used to apply for a valid NOI.
An approved form is one of the following.
- The Notice of intent to claim or vary a deduction for personal super contributions (NAT 71121-06.2012) paper form.
You can download this form here.
- A ‘branded’ paper form provided by your superannuation fund, which specifies all the information contained in NAT 71121.
- A letter stating that you wish to claim a tax deduction for your personal superannuation contributions containing the following information:
- First name
- Family name
- Date of birth
- Fund name
- Fund ember account number
- The financial year in which the contributions were made
- The amount covered by your notice
- The amount you intend to claim as a tax deduction
- A declaration that you are lodging the notice by the due date
- A statement that the information contained in your letter is true and correct
- The date
If you have any further questions don’t be afraid to contact us! Give us a call or book a consultation.
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