However, with clients starting to think about preparing their tax returns, it is important that critical administrative requirements are not inadvertently overlooked.
In the case of a valid NOI a client must advise the super fund of the amount of personal contributions made during the income year that they wish to claim as a personal tax deduction, and receive an acknowledgement from the fund, in order for the fund to convert those amounts from non-concessional to concessional contributions and tax them accordingly.
Eligible contributing members must submit the appropriate ‘notice of intent’ (NOI) form (also known as a section 290-170 form) to the super fund before the earlier of the following two dates:
- Lodgement of the contributing member’s income tax return (for the income year of contribution), and
- The end of the income year following the ‘contributing’ income year.
But in addition to these deadlines are a set of preconditions that invalidate an NOI if, in broad terms, the fund no longer holds the contribution or if part or all of the capital has been converted into an income stream. This rule could impact clients when funding a super life policy via rollover.