The AAT has held that a taxpayer’s “mistaken belief” as to the timing of a superannuation contribution did not constitute “special circumstances” under s 292-465 of the ITAA 1997 to justify reallocating her excess concessional contributions to an earlier financial year.
The taxpayer had started salary sacrificing in 2005 to build up her superannuation balance, which was relatively low due to her work patterns being affected by childcare responsibilities. The taxpayer exceeded her $25,000 concessional contributions cap for 2009-10 by $3,398 and was issued with an ECT assessment of $1,070. The taxpayer applied to the Commissioner to exercise his discretion to reallocate an employer contribution made on 3 July 2009 to the 2008-09 financial year. The taxpayer argued that the timing of the contribution was outside of her control and the law was not intended to adversely affect women in her situation.
The AAT upheld the Commissioner’s decision not to reallocate the contribution as it said the taxpayer’s “mistaken belief” as to the timing of concessional contributions did not constitute “special circumstances”, as required by s 292-465. While the AAT was sympathetic with the taxpayer’s frustration that such a small mistake could undermine what she saw as pursuing the object of the legislation, it ruled that such mistakes as to the operation of the law are not “unusual or uncommon” and do not of themselves amount to “special circumstances”. The AAT also said the taxpayer’s contention that the legislation discriminated against women in her position did not assist her as the AAT was entrusted with applying the provisions of the law as it found them.
(AAT Case [2012] AATA 754, AAT, Ref No: 2012/1659, Handley DP, 1 November 2012.)
[LTN 237, 6/12]