Refer ATO Ruling:
In this Ruling it says:
If you have partially rolled over or withdrawn your super interest (which included the contribution you made), your notice will not be valid for the entire contribution. You can only validly deduct a proportion of your contribution that remains in the fund.
This seems clear enough, but my understanding is that the Super Fund itself will determine whether the amount that you claim at Section C Q13 on the NOTICE OF INTENT Form is, in fact, "valid". The problem is that it is unclear what you can claim if you do a partial withdrawal and the ruling does not detail a formula so we can work it out BEFORE we submit the Form.
The best the ATO can come up with is this (which is not helpful at all TBH):
Claiming a deduction after a partial rollover or withdrawal
Special rules apply if, after you made a contribution, you made a withdrawal or rolled over part of your super.
A super fund will no longer hold a contribution, or at least a part of it, if the member has chosen to rollover or withdraw a part of their super account held by the fund. In such a case, a notice of intent cannot be given for the entire contribution.
A valid notice of intent will be limited to a proportion of the tax-free component of the super account that remains after the rollover or withdrawal. That proportion is the value of the relevant contribution divided by the tax-free component of the super account immediately before the rollover or withdrawal.
Where you have made a partial rollover or withdrawal and you do not know the tax free component and value of your super interest immediately before your rollover or withdrawal, your super fund may be able to confirm these amounts for you. Alternatively, you may need to seek independent financial advice to assist you to calculate the maximum deduction amount, to ensure you lodge a valid notice.
If you send a notice indicating that you intend to claim more than the tax-free component of what remains in your super account, that notice will be invalid.
Note: If you send your fund an invalid notice of intent, your fund will not be able to acknowledge it. You will need to lodge a new valid notice and receive acknowledgment from your fund to enable you to claim a deduction for your contribution.
One assumes that an actual formula exists, else the Super Fund would not be able to determine whether the amount claimed is valid.
Any ideas out there? I would be particularly interested in what the ATO thinks.
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