ATO announces administrative concession for deducting contributions made to the SBSCH
Unfortunately, the concession that allows employers to treat a superannuation contribution as having been ‘made’ when the payment is accepted by the SBSCH only applies for SG purposes. That is, there is no equivalent concession within the income tax legislation to allow a deduction to be claimed as and when a contribution is made to the SBSCH.
However, as an administrative approach, the ATO recently released draft PCG 2019/D8 to describe circumstances in which the Commissioner will not apply compliance resources to determine which income year an employer is entitled to claim income tax deductions for superannuation contributions made through the SBSCH to a superannuation fund or retirement savings account (‘RSA’).
The concessional administrative approach described in draft PCG 2019/D8 will apply to an employer if all of the following requirements are satisfied:
- the employer (or a nominated representative on the employer’s behalf) made payments to the SBSCH on behalf of their employee(s) before close of business on the last business day of the income year in which a deduction is being claimed for the contribution;
- at the time of making the payments, the employer provided all relevant information to enable the SBSCH to process the payment to the employees' superannuation fund accounts or RSA;
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