Contributions reserving | Accurium

Technical article
Contributions made to a self-managed superannuation fund (SMSF) are restricted by the contribution caps. Exceeding the contribution caps for concessional or non-concessional contributions can lead to paying extra tax. When a contribution is received by a fund, the fund has 28 days from the end of the month to allocate the contribution to a member. This article discusses the use of an unallocated contributions account when contributions are not immediately allocated to a member and what this means for the tax payable on concessional contributions and the contribution caps.