Ask an Expert: Self-employed, Superannuation and Notice of Intent

National Technical Manager

David Glen

Question

I have a client paying for their insurance through a contribution to superannuation. They would like to claim a tax deduction. Do they have to complete a notice of intent?

Answer

A personal contribution to superannuation is treated as a non-concessional contribution.

To claim a tax deduction for a personal contribution to superannuation, the client needs to complete the notice of intent to claim a tax deduction under section 290-170 of the Income Tax Assessment Act of 1997. There are three key elements of this notice:

1. The client needs to be a member of the fund
2. The money must be in the fund at the time the notice is completed, and
3. The fund must acknowledge receipt of the notice back to the member

The notice must be completed before the earlier of the below two dates:

• The member lodges their personal tax return for the year of the contribution
• The end of the income year following the year of contribution

We are starting to see issues arise in the following circumstances:

• Clients are rolling superannuation benefits over to TAL and neglecting to complete the notice of intent in the contribution fund prior to the rollover.
• Clients with TAL Super owned policies funded by contribution are cancelling their cover prior to completing the notice of intent.
• Clients are finalising their tax returns prior to completing the notice of intent.

For more information, please do not hesitate to contact the TAL Technical Team at AskAnExpert@tal.com.au. Our answer is subject to the disclaimer below.

The information contained in this email is general information only, and is not intended to be legal, taxation or financial advice. TAL Life Limited, its related companies and any of their representatives have not taken into consideration any individual’s personal circumstances, financial needs or objectives.
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