The ATO have issued a Draft Practical Compliance Guideline to outline circumstances when the Commissioner will not apply compliance resources to determine in which income year a small business employer can claim tax deductions for superannuation contributions made through the Small Business Superannuation Clearing House (SBSCH)

This will apply where:

  • the payment to SBSCH was made on behalf of its employee(s) before the close of business on the last business day of the income year;
  • at that time, all relevant information was given to the SBSCH to enable it to process the payment; and
  • the payment has not been dishonoured or returned to the employer.

Accordingly, this will allow eligible small business employers to claim a deduction in the income year the payment is made to the SBSCH, even if the superannuation fund receives the contribution in the following income year, and the guidance will apply retrospectively.

The ATO has invited comments on the draft Guideline by 17 January 2020.

Further information

Australian Taxation Office, Draft Practical Compliance Guideline PCG 2019/D8, 21 November 2019

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