ATO announces administrative concession for deducting contributions made to the SBSCH (continued)
- the payment has not been dishonoured by the superannuation fund or RSA, or returned to the employer by the SBSCH; and
- the employer would otherwise be entitled to the income tax deduction (i.e., the employer meets all other requirements for deducting contributions under Subdivision 290-B of the ITAA 1997).
Note that employers will need to check that they meet the above requirements for each year that they wish to rely on the ATO’s administrative approach.
In draft PCG 2019/D8, the ATO states it will not apply compliance resources to consider whether employer contributions were received by a superannuation fund or RSA in the same income year in which the payment was made to the SBSCH, provided the payment to the SBSCH was made before close of business on the last business day of the employer’s income year (i.e., generally before 30 June) and the other requirements outlined above are satisfied.
As a consequence of this approach, employers do not need to check with their employees' funds to determine in which income year the contributions were received from the SBSCH prior to claiming an income tax deduction in the income year the payment was made to the SBSCH.
Note that, when finalised, the administrative approach contained within draft PCG 2019/D8 is proposed to apply both before and after its date of issue.
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