Contributions you can accept
As a self-managed super fund (SMSF) trustee, you can only accept allowable contributions. For a contribution to be allowable:
- it must be an accepted type of contribution, such as
- mandated employer contributions
- non-mandated contributions
- in-specie contributions
- the member must meet age restrictions
- member contributions can only be accepted if the SMSF also has the member's tax file number (TFN).
You must:
- properly document contributions, including the amount, type and breakdown of components
- allocate them to the member’s account within 28 days of the end of the month in which you received them
- accurately report contributions made to your fund during the financial year in your SMSF annual return.
Member's tax file number
When a member joins your fund, you should ask for their TFN and give it to us. You can do this when you register the fund or when a new member joins.
A member is not required by law to give their TFN. However, if they don't:
- your fund can't accept member contributions for them, such as personal and eligible spouse contributions
- your fund will have to pay additional tax on their mandated employer contributions
- there may be administrative delays if we can't identify the member from the other information you've provided
- the member may not be able to receive super co-contributions.
If the member hasn’t provided their TFN and you’ve accepted member contributions for them, you’ll need to return the contribution within 30 days of becoming aware of the contribution. However, if they provide their TFN within 30 days of receiving the contribution, you don’t have to return the amount.
If you receive employer contributions on behalf of a member and you pay additional income tax because you did not have your member’s TFN, you may be able to claim a tax offset in a later financial year if the member later gives you their TFN.
Mandated employer contributions
Mandated employer contributions are contributions made by an employer under a law or industrial agreement for the benefit of a fund member. They include superannuation guarantee contributions.
You can accept mandated employer contributions for members at any time, regardless of their age or the number of hours they’re working.
If your SMSF receives contributions from employers (other than related-party employers), your SMSF will need an electronic service address (ESA).
Non-mandated contributions
Non-mandated contributions are any super contributions not required by law. They include:
- contributions made by employers over and above their super guarantee or award obligations (such as salary sacrifice contributions)
- member contributions – these are contributions made by or on behalf of a member, such as
- personal contributions
- eligible proceeds from main residence disposal (downsizer super contributions)
- super co-contributions
- eligible spouse contributions
- contributions made by a third party, such as an insurer
- re-contributing COVID-19 early release super withdrawals.
When you can accept non-mandated contributions
For members under 75 years old
From 1 July 2022, you can accept all types of non-mandated contributions, including downsizer super contributions (where the member has reached eligible age).
For a member turning 75, contributions must be received no later than 28 days after the end of the month they turn 75.
Between 1 July 2020 and 30 June 2022, you could accept all types of non-mandated contributions for members under 67. If the member was between 67 and 75, they needed to satisfy the work test or the work test exemption before you could accept non-mandated contributions.
To satisfy the work test the member must have been gainfully employed for at least 40 hours during a consecutive 30-day period.
Where members don't meet the work test, non-mandated contributions can be accepted for an extra 12 months where:
- they satisfied the work test in the financial year before the contribution was made
- their total super balance was less than $300,000 at the end of the previous financial year
- the work test exemption hasn't been used in a previous financial year.
Before 1 July 2020, for members that were between 65 to 75, you could only accept non-mandated contributions if they met the work test or the work test exemption.
For members 75 years old or older
You generally can't accept non-mandated contributions. However, you can accept downsizer contributions (there is no maximum age limit) if you have the member's TFN.
Super co-contributions and employer contributions that relate to a valid contribution period for the member can be accepted at any time.
In specie or non-monetary asset contributions
'In specie' contributions are contributions to your fund in the form of a non-monetary asset.
Generally, you must not intentionally acquire assets (including in-specie) from related parties of your fund. However, there are some exceptions to the rule, including:
- listed shares and other securities
- business real property (land and buildings used wholly and exclusively in a business).