The AAT has upheld the Commissioner’s decision to disallow a deduction for personal superannuation contributions made in the 2007 income year after ruling that the taxpayer was not an “eligible person” under former s 82AAS of the ITAA 1936.
The taxpayer took a redundancy as a TAFE teacher in May 2007. He claimed a deduction of $16,687 for personal superannuation contributions made in the 2007 income year. The Commissioner denied the deduction under former s 82AAT of the ITAA 1936 as the taxpayer was in eligible employment during the 2007 income year and had received superannuation benefits from his employer in that year. The taxpayer argued that he had only worked for part of the 2007 year so that he was eligible for a deduction for that period of the year worked out on a pro rata basis.
The AAT held that the taxpayer was not entitled to a deduction for his personal superannuation contributions under former s 82AAT as he was not an “eligible person” under former s 82AAS during the relevant period (ie the year ended 30 June 2007). The AAT said the taxpayer was in eligible employment and was paid superannuation benefits for the 2007 income year by his employer. The AAT also ruled that the taxpayer did not qualify as an “eligible person” under the 10% rule in former s 82AAS(3) as his income from eligible employment was greater than 10% of his assessable income for the relevant year.
(AAT Case [2012] AATA 655, Re Fraser and FCT, AAT, Ettinger SM, AAT Ref: 2012/1186, 28 September 2012.)
[LTN 190, 2/10]