Contributions: which comes first, acceptance or the cap?

A question that is often asked is “Can I make a contribution to my super fund?”. This is the wrong question to ask. In fact, there are two questions that should be asked in relation to a superannuation contribution:

  1. Can the trustee of the super fund accept the contribution?
  2. If the trustee of the super fund can accept the contribution, what are the contribution cap consequences of it being accepted?

The first question is the concern of the trustee of the superannuation fund. The second question is the concern for the member for which the contribution relates. Just because a member’s contribution cap is zero, does not mean that they could not make the contribution, or more correctly, that the trustee could not have accepted the contribution. However, once a contribution has been accepted by a trustee, it is difficult to return it, despite the contribution cap tax outcome making the contribution regretful.

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The information in this document is provided by Accurium Pty Limited ABN 13 009 492 219 (Accurium). It is factual information only and is not intended to be financial product advice, tax advice or legal advice and should not be relied upon as such. The information is general in nature and may omit detail that could be significant to your particular circumstances. While all care has been taken to ensure the information is correct at the time of publishing, superannuation and tax legislation can change from time to time and Accurium is not liable for any loss arising from reliance on this information, including reliance on information that is no longer current. Tax is only one consideration when making a financial decision. We recommend that you seek appropriate professional advice before making any financial decisions.