Can an employer claim input tax credits for expenses incurred on behalf of a superfund?
In short, the answer is no.
The employer is not entitled to the credit where the acquisition is made by the superannuation fund.
Under the GST Act, the input tax credits are available to a registered entity in relation to items acquired in the course of carrying on its enterprise. A superannuation fund is a separate entity from that of the employer and equally treated as such.
Consequently, when an employer incurs an expense on behalf of the superannuation fund, the employer is not entitled because it is for the other entity, not the entity of the employer. The expense was made to the recipient being the superannuation fund, not the employer.
It is important to note that there are some limited circumstances where the employer may be entitled to the input tax credits for the expenses incurred. This would be in the event where the employer can establish that the employer made the acquisition and then directed the acquisition to the superannuation fund.