Can you put money into super? Is there a difference between personal contributions and employer contributions? How much can you put in? What happens if I put in too much? These super fund contribution rules are complex and if you get it wrong you may pay 93% tax on the contribution!
It sounds a little complex, but a contribution is a payment made to your fund in the form of money or an asset other than money (called an in specie contribution). So it’s when you put money or assets into the fund. Provided the governing rules of your fund allow it, your SMSF can generally accept:
- employer contributions
- personal contributions
- salary sacrifice contributions
- super co-contributions
- eligible spouse contributions.
You need to properly document contributions and rollovers – including the amount, type and breakdown of components – and allocate them to the fund members’ accounts within 28 days of the end of the month in which you received them.
There are minimum standards for accepting contributions. Whether a contribution is allowable depends on:
- the type of contribution – for example, you can accept mandated employer contributions, such as super guarantee contributions from a member’s employer, at any time
- the age of the member – for example, you cannot accept non-mandated contributions from members aged 75 or over
- whether the member quotes their TFN
- whether the contribution exceeds the member’s fund-capped contributions limit.
We have further information in our resources section.
These are minimum standards – the trust deed of your fund may have more rules around accepting contributions.
In specie contributions
In specie contributions are contributions to your fund in the form of an asset rather than money or cash. Often these contributions are shares owned by the members. However, be aware of the rules around what assets can be transfererd in.
Rollovers and transfers
A rollover is when a member transfers some or all of their existing super to your fund.