Extended lodgement time frame – Notice of Intent to claim a deduction in 2018/19

The ATO has written to an estimated 25,000 individuals who:

  • have claimed a tax deduction for a personal super contribution in the 2018/19 financial year, and
  • whose super fund has not reported receipt of a valid Notice of Intent.

The ATO letter encourages these individuals to submit a Notice of Intent to their fund to receive an acknowledgement notice before 30 June 2020, to retain the deduction.

What about the legislated timing requirements?

Under tax law, a Notice of Intent must be submitted to the fund and acknowledgement received by the individual by the earlier of:

  • the end of the following financial year (30 June 2020 for the 2018/19 financial year), or
  • the time the person submits their tax return for the financial year in which the contribution was made.

This would ordinarily mean that if a person has already submitted their tax return without lodging a Notice, they are ineligible to claim a deduction.

However, the ATO has confirmed that in this instance, if a Notice of Intent is submitted with an acknowledgement received from the fund before 30 June 2020, they will not review the timing of the acknowledgement notice.

Those clients contacted by the ATO should endeavour to lodge outstanding Notice of Intents as soon as possible to allow trustees to provide acknowledgement prior to 30 June 2020.

Any questions, contact a financial adviser at 1300 717 136 today.


Source: MLC News and Updates, Article published on 05-06-2020