Top 10 tips to SMSF Compliance

It’s frustrating when SMSF audits aren’t finalised in a timely and fuss-free manner. Chasing up documents adds precious time to the audit for both the accountant and auditor, resulting in unnecessary and costly delays.

Trying to find paperwork for an SMSF audit that’s completed almost a year after balance date means that documentation requests continue to represent the largest number of queries raised during an audit. SMSF auditors live by the motto that if there’s no documentation, it doesn’t exist.

Here are our top 10 tips to help reduce the time taken to finalise audits and keep your SMSFs compliant. 

  1. Contributions  Ensure that all contributions are received into the fund’s bank account before midnight 30 June 2019. Otherwise, the contribution cannot be received by the fund during 2019 or, where received on or after 3 June, also counted as a reserve to be allocated in the 2020 financial year.
  2. Minimum Pension The minimum pension must be taken to avoid a pension shortfall, otherwise exempt current pension income cannot be claimed for the year. Where the shortfall is less than 1/12 of the minimum pension amount, the trustee can self-assess and a catch-up payment can be made in the following year. Note that this exemption is a one-off payment allowed at the fund level only (not per member)
  3. Expired related party lease agreements If the lessee has the option to renew the lease agreement, best practice is to provide a minute/letter stating that the option has been taken up. If there’s no option to renew, a newly signed lease agreement must be provided.
  4. Property rental valuation for related parties. Make sure that a rental valuation is included in the property valuation report, confirming that the rent received from the related party is at arm’s length.
  5. Related party property information. Whether the property is held by a related party or directly by the fund, the checks and verifications are the same. Provide all related party property information as per the SMSF property audit checklist.
  6. Current Year Signed Documents  The trustees are required to sign the current year’s financial statements, trustee representation letter, terms of engagement letter (if applicable for that year) and annual minutes. The audit report cannot be finalised and issued without these signed documents.
  7. Takeover Documents  Provide your new SMSF auditor with the fund’s statutory documents, signed financials, audit report and management letter for the previous year (and yes, we know this isn’t always easy!)
  8. Sundry Debtors Provide an explanation or workpaper if it relates to a compliance breach and provide all supporting evidence where the outstanding amount has been paid back during the next financial year.
  9. Insurance Ensure the policy explicitly states that the fund is the policy owner; the names of the insured members; the insurance type and the level of cover
  10. Work test declaration Where the member makes a contribution over the age of 65 they are required to provide a signed work test declaration stating they have worked a minimum of 40 hours over a 30-day period

It’s easy to lose sight of attending to the finer details of fund documentation, but a lot simpler to take the time to get it right the first time and avoid a breach altogether.

Remember, too, that getting help in rectifying a reportable contravention from the outset will make all the difference when the ATO is reviewing fund compliance.

In the long run, being guided safely through the myriad of SMSF rules and regulations by an independent, highly experienced SMSF audit specialist firm means that the future retirement income of your SMSF client remains safe and secure.

Written by: Shelley Banton, ASF Audits

Source: SMSF Adviser

53% unaware of changes to insurance in superannuation on 1 July

Over half of Australians are unaware of changes which could mean they lose insurance cover they have in their super fund from 1 July.

A study conducted for the Association of Superannuation Funds of Australia (ASFA) found that 53% of those surveyed were unaware of the changes to insurance in superannuation coming into effect on 1 July 2019.

As part of the Government’s ‘Protecting Your Super’ package of laws, insurance cover will be stopped for superannuation accounts which are classified as ‘inactive’ because they haven’t received contributions for 16 months or more.

The Protecting Your Super package is aimed at reducing erosion of superannuation balances though unwanted insurance, though it also has a net boost to the Federal Budget bottom-line. There has also been concern from industry about the short deadlines involved. 

ASFA says the change could impact over 3 million Australians. The survey found that 38% said they had a super account that hadn’t received any contributions in the last 16 months, including both people with a single account and people with multiple accounts.

While 47% of those surveyed said they were aware of the changes, only 19% thought they had a good understanding, while 28% said they had heard of the changes but didn’t know any details.

Super funds have been trying to contact members, but the research found that 34% of respondents rarely or never open communications from their super fund. This rises to 52% for Australians aged 18 to 34.

When informed about the changes, 63% said they were likely to seek out more information. The superannuation industry has launched a website to provide information about the changes: timetocheck.com.au

ASFA CEO Dr Martin Fahy said the research echoed industry concerns about the impact of the changes.

“This legislation has been introduced for very good reasons, however the time frame for implementation has meant it has been challenging for superannuation funds to engage their members to ensure they understand the consequences of the changes in just a few short months.”

“We already know Australians are not highly engaged with their superannuation – from the balance to the insurance products they hold – however this study demonstrates that the problem only becomes more acute when looking at those Australians most likely to be impacted by the changes.”

The research was conducted by YouGov Galaxy, based on a “nationally representative sample of 1,026 Australians aged 18 years and older,” according to ASFA.

Source: www.solepurposetest.com/news

Five things you won’t believe your SMSF can invest in

The most common reason Australians switch to a self-managed super fund is for the flexibility and control over how their super is invested.

For many, this can mean a venture into property investment, specific shares or a risk-averse term deposit. But there are a number of more unusual ways you can diversify your SMSF.

1. A property for your business

If you have a business, or are looking to start one, your SMSF can purchase a commercial property that your business can operate from.

But this isn’t a way for you to skimp on your rental payments; you will need to pay the rental market rate to your SMSF in order to pass the ATO’s strict sole purpose test of your SMSF only providing benefits for retirement.

Fortunately, when your SMSF owns the building and your business pays the rent into your SMSF, rather than a third-party landlord you’ll effectively get that rent back for yourself in retirement.

2. Whiskey or wine

Yep, it’s been known that some SMSFs have invested in barrels of whiskey or cases of collectable wine, which is great news if you are a wine connoisseur or whiskey enthusiast – although you can’t drink any of it, sorry.

If you know how to spot a good vintage that’s likely to give a good return on investment, then you could choose to invest your super in this rather exotic asset class with an SMSF.

However, to satisfy the sole purpose test, you have to make the investment on an arm’s length basis meaning that the wine or whiskey cannot be stored at your home or a place you would have access to it (such as a garage or shed). You also need the investment to be independently valued by a qualified third party.

3. Classic cars

While you are not allowed to use your SMSF to purchase a new ride, you could invest in a classic collectable car. Before you start envisioning yourself driving through vineyards in the convertible of your dreams, remember that your SMSF’s car cannot be used by the trustee or anyone related to the trustee.

This means neither you nor your family can take the car out for a ride or have restoration work done on the car. In addition, you are not allowed to store or display the car at your private residence as even looking at it in your garage could constitute benefiting from the investment before retirement.

As is the case with all collectable investments, you would need to have the car independently valued and make sure that it is appropriately insured within seven days of acquisition.

4. Corporate artwork

We have a number of clients who have invested in artwork through their SMSF and have found a unique way of making a return on their investments.

They are renting out their sculptures and paintings to corporate spaces, such as the large atriums in skyscraper office buildings or event spaces. Some are even making 10% returns a year.

There are very strict rules for investing in artwork with an SMSF, especially when it comes to insurance as specialist insurance policies are often necessary for these types of investments. The ATO also requires your decision to invest in art to be documented and kept for a period of 10 years.

5. A marina berth

A marina berth is another unusual asset that SMSFs could consider as a long-term investment plan. Investing in a marina berth does not actually give you direct ownership. Instead, your SMSF becomes the long-term leaseholder and makes a return by renting out the berth to short-term tenants at a higher rate.

Remember, you cannot use the berth for personal use such as storing your own boat – but if you’re a boat enthusiast, this is a creative and potentially lucrative way of diversifying your SMSF.

Whether you decide to invest in traditional assets such as shares or term deposits, or something a little more uncommon, it’s crucial to consider the long-term potential returns for your investments in your SMSF. After all, your retirement depends on it.

Source: moneymag.com.au

Eight things you need to know about SMSFs and property

How do I decide if buying a property through my SMSF is right for me?

Having an SMSF is usually all about having greater control over your super, but with this comes a serious set of responsibilities and obligations, along with the requirement to exercise self-control. These attributes are even more important should you consider purchasing property through your SMSF.

One very strict rule that is commonly misunderstood or not known is that if you are purchasing a residential property through your SMSF, you can’t live in it and neither can anyone related to you, even if they pay market-based rent.

Further to this, if you already own a residential property, your SMSF cannot purchase this from you – again, even at market price. If you feel you may be tempted to utilise said property, or need to purchase an investment property for family to live in – don’t use an SMSF.

Commercial/business premises, however, can be leased to you or a third party related to you, providing this is done on a commercial arms-length basis. This is a particularly attractive proposition to small business owners. Your SMSF can purchase a business premises from which you can conduct your business, and pay rent to the super fund.

Many small business people don’t pay themselves super, so paying rent that would otherwise go into someone else’s pocket into the super fund for their own retirement makes a lot of sense.

You may already own the building you run your business from. Subject to contribution caps and considering stamp duty and capital gains tax personally, you can contribute the premises to an SMSF, providing it is done at market value.

You need to have a decent balance already in super to make setting up an SMSF to buy property a viable proposition. This is very important should you need to obtain finance to complete the purchase.

Why? Banks will require an SMSF to have at least 40% of the value of the property as a deposit, will most likely charge a higher rate of interest and will not entertain approving finance for a fund that doesn’t have at least $200,000 initially, and decent liquidity (cash and/or shares) in the fund post property purchase.

This is due to the requirement that an SMSF can only borrow via a limited recourse borrowing arrangement (LRBA).

You need to consider whether the fund can cover ongoing property ownership costs should the property be vacant for a period and there is no rental income.

Similarly, if the meeting of mortgage payments is reliant on super guarantee contributions – what happens if one or all the members of the super fund become unemployed?

You can contribute personal monies (subject to contribution caps) if there is a cash flow issue within the fund, but they are counted as contributions and cannot be repaid to you. Do you have adequate monies outside of super to put into your SMSF should the need arise?

An SMSF can invest in anything, providing it meets the “sole purpose test”. That is, each investment made or action undertaken by the SMSF is done so for the sole purpose of providing retirement benefits for its members, or death benefits to a member’s beneficiaries if they die.

In the case of purchasing property, will it be providing an adequate income stream and what is the likelihood of capital growth? Will these be sufficient to ensure the members of the fund are able to access suitable income streams when eligible?

As a trustee of an SMSF you are required to formulate an investment strategy and consider among other things, the diversification of assets held. Diversification is considered an integral part of any long-term investment plan. It doesn’t guarantee gains or protect you from losses but assists in ensuring consistent returns over a period of time.

If your super fund’s only asset is property, you are putting all your “super eggs in one basket”. Is this appropriate for the members of the fund, their circumstances, age and risk tolerance? There is nothing that prevents the fund holding only real property, but make sure it is appropriate and is justified by the fund’s investment strategy.

Depending on your personal marginal rates of tax, the concessional tax rates offered to complying super funds may provide an incentive to consider setting up an SMSF to purchase property.

All earnings of an SMSF are taxed at 15%, and the effective rate of tax on any capital gains is 10%. Once the super fund is in retirement phase there is no tax payable on earnings and capital gains.

Are you willing to be very hands on with your super? Other asset classes allow for a “set and forget” approach. You need to be willing to be actively engaged in managing and being responsible for not only the SMSF, but also a property.

If you are a fan of the “renovator’s delight” and want to use your ability to flip a property to improve your super balance, you need to understand the additional rules that apply when the property is owned by an SMSF. If you’ve had to borrow to purchase the property, any improvements can only be paid with existing super monies, you can’t borrow to finance the renovations.

In addition to this, you will be in breach of the restrictive LRBA terms if you improve the property to the point it becomes “substantially different to the original asset”.

By Kimberlee Brown, Director with H&R Block SMSF Solutions

2. What are the key advantages of investing in property through my SMSF?

Combined investing as a couple or family

Combining your account balances with the other members of your family may give you the purchasing power you need to invest in a property that would be beyond your personal capacity at present.

It can be tax effective

The earnings within your superannuation fund are taxed at only 15% with a 33% capital gains discount for assets held more than 12 months (that is 10% CGT) and if you hold on to that property into pension phase, the rent and/or sale proceeds may be tax free. (Subject to the $1.6m pension transfer limit per member from 1 July 2017.)

Salary sacrifice

You can salary sacrifice additional income to pay off the loan quicker from pre-tax dollars. Paying 15% tax on salary sacrifice and then making additional repayments rather than paying your marginal tax rate on the income.

Supporting business growth

You can buy a business property to lease back to your own business. This may help free up funds to grow the business.

Bricks and mortar – feeling more in control of your investments

Many SMSF investors appreciate having control over the investments they buy and the ability to “value add” to their property repairs or renovations.

Land tax

The SMSF is a separate entity for land tax

By Liam Shorte, director of Verante Financial Planning

3. What are the risks of investing in property through my SMSF?

Property investment using an SMSF will not make it immune to any of the usual risks involved in property investment. There are some issues, however, that are unique to holding property in an SMSF and they are outlined as follows.

Property is a lumpy, relatively illiquid asset. It can take time to sell and settle and you aren’t able to sell a part of it – it’s all or nothing.

Once members move into retirement phase there must be a minimum drawdown from the fund each year to maintain the funds’ tax-exempt status. If the property isn’t positively geared, and the fund only holds the property and little cash, it is difficult to meet these requirements.

It proves a difficult asset to hold when the focus of the fund moves from the building of wealth for retirement, to being in retirement and needing to draw a regular income stream.

The usual strategy is to sell the property when members reach retirement to have sufficient liquidity to pay the appropriate income streams. The timing of this may not be ideal if the property hasn’t been held for sufficient time or there is still a decent mortgage over the property. These scenarios need to be worked through as part of the fund’s long-term investment strategy.

Properties have ongoing costs and without sufficient contributions to the fund and rental income these become difficult to finance within the fund. As well as regular ongoing costs, there may be large unexpected costs that will also need to be financed. You may need to find personal monies to cover these costs, and they can’t be paid back by the fund.

You need to consider the impact that purchasing property within an SMSF will have on your non-superannuation monies.

The superannuation space continues to be subject to legislative changes. It is not known whether future changes may impact negatively on those who hold property within an SMSF.

If the property investment requires finance, the additional requirements involved because it is being purchased in an SMSF are both more expensive and complicated. Failure to understand these complexities or engage appropriate professionals who know how to navigate the space can result in further unnecessary costs and potential loss of your retirement savings.

Additional stamp duty is a big danger if a property purchased via an LRBA for an SMSF is not executed correctly.

If you don’t already have an SMSF but want to establish one to purchase property and you require finance, it is strongly recommend you gain pre-approval first.

If you set up an SMSF then seek finance, you may be disappointed to find that you are unable to gain sufficient finance for your proposed plan and you are left with having to pay for the establishment of the fund and the ongoing compliance obligations that come with it. It’s a much harder set of rules and obligations that need to be met by the SMSF than if you were to do the same personally.

The temptation! If you have purchased a residential property or holiday home through your SMSF, you must resist temptation to use it personally or let anyone related to you do so. Doing so risks the complying status of your super fund and, in the worst-case scenario, the loss of the majority of your super in tax and fines.

By Kimberlee Brown, Director with H&R Block SMSF Solutions

4. Is buying a property through an SMSF a good idea if I’m close to retirement?

Generally speaking, buying a property through an SMSF when you are close to retirement is not a great idea, unless you were seeking to diversify the asset mix in your portfolio and the property only formed part of a broad asset mix. The primary reason for this is illiquidity.

The whole point of superannuation is to build up a pool of assets that will sustain your lifestyle throughout retirement, and when retirement comes, you will need to start drawing on this pool. That requires liquidity, which property, being a “bulky asset”, does not give you.

Furthermore, if your SMSF is paying you a pension in retirement, you need to ensure that the assets in your SMSF are able to generate enough cash flow in order to pay the legal annual minimum pension of at least 4% of the value of SMSF pension assets, which may be difficult if your SMSF is fully invested in low-yielding property.

By Andrew Yee, director of superannuation at HLB Mann Judd

5. What is a limited recourse borrowing arrangement?

A limited recourse borrowing is an arrangement where an SMSF borrows money to purchase an asset, either from a commercial lender or a related party of the SMSF (the lender can even be the members themselves).

As these can be complex arrangements, it is crucial that trustees turn to their adviser to help them navigate any compliance pitfalls and avoid running foul of the legislation.

Legislative requirements include the asset being held by a holding trustee (or custodian) for the SMSF trustee while the loan remains in place, the SMSF providing all of the purchase money and limitations on improvements to the property.

In addition to legislative requirements, the SMSF will need to obtain specialist advice on the stamp duty implications of their proposed acquisition prior to signing any transactional documents.

If the arrangement is not properly set up and implemented from the start, the SMSF runs the risk of not only contravening the superannuation legislation but also incurring double (or even triple) the amount of stamp duty that would normally be payable.

By Julie Hartley, an associate with Townsends Business & Corporate Lawyers

6. Can I buy overseas property within my SMSF?

The short answer is yes, your SMSF can buy overseas property. This is course assuming that your SMSF trust deed allows for it and your SMSF investment strategy has specifically provided for such investments.

The main difficulty for an SMSF buying overseas property is that many countries have restrictions on overseas property buyers, especially where the buyer is not a natural person.

For example, in many states of the US, SMSFs can only buy property through a US limited liability company. The SMSF may be required to open an overseas bank account for the rental receipts and payments.

This may be problematic if the overseas banking institution does not allow or recognise an SMSF to be a valid holder of an overseas bank account. Also the SMSF may need to report its income on the property to the overseas taxing authority, for local, state and federal taxes.

By Andrew Yee, director of superannuation at HLB Mann Judd

7. Can I renovate a property owned by my SMSF?

Yes, you can renovate the property but you cannot use borrowed money to do so. So, for example, if you borrow to buy the property and intend to renovate the kitchen then you can only use the SMSF’s own funds or additional contributions from the members to pay for the renovation, not borrowed money.

Also, while the property is under a loan you cannot change the nature of the property.

For example, you could not change a residential house into a three townhouse development. The good news is that you can add a granny flat under the rules.

Be very careful as trustee if you take payment for doing the renovations, as trustees must have the formal skills and qualifications that allow them to perform a specific duty or deliver a service for which remuneration is normally expected.

So as a DIY renovator you cannot charge the fund for your time painting the property if your usual job is an accounts manager. 

By Liam Shorte, director of Verante Financial Planning

8. What happens when I want to sell the property?

When the SMSF decides to sell the property, the usual transaction methods for a sale should be followed, for example contract, deposit, outgoings adjustments, settlement, etc.

While this would generally be expected if the purchaser is an independent third party, it is important to also proceed in this manner if the property is to be sold to a related party of the SMSF.

In addition to the above, the trustee should also make sure that the property is sold at market value to avoid any compliance or detrimental tax implications.

If the property is held by a holding (bare) trustee under a limited recourse borrowing arrangement, the property can be sold directly to a third party without being first transferred to the SMSF trustee. It is important, however, that the relevant compliance documentation is prepared to note the vesting of the holding trust arrangement.

By Julie Hartley, an associate with Townsends Business & Corporate Lawyers

Source: moneymag.com.au

SMSF Association Technical Day Series

Challenge your understanding of the rules which shape your SMSF advice with case-study based, interactive workshops followed by comprehensive technical sessions. 

You’ll be introduced to topics of increasing importance in the overall framework of advice, ensuring the best interests of your SMSF clients. Hear the latest developments in SMSF legislation, regulation and interpretation of complex theories and strategies.

Practical Systems Super is proud to be the official SMSF Association conference partner at the Brisbane and Sydney events this year. We will have staff available to talk to you about all of your SMSF administration and software requirements for your business.


23 Jul 2019
8:00 am AEST – 6:00 pm AEST


Mercure Hotel Brisbane
85-87 North Quay
Brisbane, QLD 4000

CPD Points:



1 Aug 2019
8:00 am AEST – 6:00 pm AEST


Building 10
Level 7/235 Jones St
Sydney, NSW 2007

CPD Points:


Beyond the contribution caps

Most professionals are aware of the general limits or “caps” on superannuation contributions. Despite there being no laws preventing fund members from making unlimited contributions, most understand that there can be significant financial consequences associated with exceeding those caps. It is important to remember that there are specific measures which allow for contributions beyond the usual maximum amounts permitted. These can present important planning opportunities which may otherwise be overlooked.

The general contribution caps

There are defined annual caps or maximum amounts that are prescribed for the various types of superannuation contributions. The applicable caps for the two major contribution types are:

  • Concessional contributions – $25,000 per annum. These include employer contributions, salary sacrifice and personal contributions claimed as a deduction.
  • Non-concessional contributions – $100,000 per annum and only available if the Total Superannuation Balance of the member is below $1.6 Million.

Consequences of exceeding the contribution caps

It is not possible to simply withdraw excess contributions from the fund (even if they were made by mistake) and the individual concerned will need to wait until the Australian Taxation Office issues a determination notice. Briefly, the consequences of exceeding the contribution caps can be summarised as follows:

  • Excess concessional contributions – the excess contributions will be taxed at the members’ marginal tax rate and there is generally an additional charge which is effectively interest on the additional tax payable. Up to 85% of the excess contributions can be withdrawn from the fund and any excess amounts not withdrawn will be treated as non-concessional contributions with possible flow-on effects from excess non-concessional contributions.
  • Excess non-concessional contributions – there are basically two options here; (a) elect to withdraw the excess in which case 85% of the associated earnings on the excess amount will be added to the member’s personal taxable income and taxed at their marginal rate of tax, or (b) elect not to release the excess and have the full amount of the excess taxed in the fund at the highest marginal tax rate of 47%.

Measures which allow contributions beyond the general caps

It is clear that making excess contributions will generally lead to a situation of paying additional tax and produce an overall negative financial outcome for the member concerned. However, there are a number of specific measures which allow for contributions beyond the usual maximums and these can be incorporated into strategies with significant benefits to the member. Here are some examples:

Example 1 – utilising the 5 year catch up provisions for concessional contributions

Fred is employed on a salary of $86,000 pa and has had employer contributions of $8,170 made each year from 1/7/2018. His current total superannuation balance is $250,000. Towards the end of the 2022/23 financial year, Fred sells an investment property and makes a gross capital gain of $200,000. His accountant advises that he will be up for additional tax of around $39,300. 

Fred could consider a concessional contribution to his superannuation fund of up to $84,150 which is the amount of his unused concessional cap since 1/7/2018. This would reduce the additional personal tax to $6,000 and after allowing for the 15% contributions tax on the $84,150 into the fund, Fred’s net saving would be around $20,600.

Example 2 – claiming 2 years concessional contributions using a contribution reserving strategy

Katie is self-employed and for the year ended 30/6/2019 estimates her net business income at $180,000. She has planned for some time to take a “year off” and travel, and has arranged this to commence in the following year and so is unlikely to have any significant income for that year. Katie currently has $750,000 in her Self-Managed Superannuation Fund and is about to sell an investment property which is expected to realise a gross capital gain of $100,000. The additional net capital gain will attract tax of around $23,500.

Katie decides to contribute two amounts of $25,000 to her superannuation fund; one in December 2018 and one in mid-June 2019. The effect of this will be to reduce Katie’s personal tax by $23,500 and after allowing for the 15% contributions tax in the SMSF, her net saving is $16,000 which is double the amount saved if she simply contributed the $25,000 cap amount.

Note that there are several essential elements for this strategy to be effective:

  • The “second” contribution of $25,000 has to be made in June as the SMSF will have to “reserve” this amount for a maximum period of 28 days i.e. when the contribution is received in June, it is allocated to a contributions reserve and then allocated to Katie’s account in the Fund in early July
  • Katie will need to complete a “Request to adjust concessional contributions” form to ensure that the Australian Taxation Office does not treat the additional $25,000 as an excess concessional contribution.
  • Generally, this strategy can only be used by those who have a self-managed superannuation fund.


Example 3 – using the CGT contributions limit for proceeds from the sale of a small business and combining with the home “downsizer” contributions and other measures

Rose took over the family farm  25 years ago and having reached the age of 66, decides to sell up and move to the coast to be near family. The farm is sold for $2.5 million and after taking advice, Rose decides to move the maximum amount possible into a newly established self-managed superannuation fund. Settlement of the farm is expected in May and she would like all the financial arrangements to be in place by 30th June.

Rose’s goal of achieving the maximum possible superannuation balance in the specified time frame could be achieved using a combination of available strategies as follows:

  • Make non-concessional contributions of $300,000 utilising the 3 year bring forward option (now available to those aged 65 and 66)
  • Make a CGT contribution up to the maximum allowed for 2018-19 of $1.48 million
  • Make a “downsizer contribution” of $300,000 (in relation to Rose’s home which was part of the farm). Note that these contributions are not treated as non-concessional and are not subject to the usual Total Super Balance Cap
  • Make a concessional contribution of $25,000
  • Make a second concessional contribution of $25,000 (as per example 2)
  • Total amount contributed is therefore $2,130,000
  • Rose then commences a retirement phase pension with a balance of $1.6 million, leaving $530,000 in accumulation phase.


Take out point

Even though there are basic defined caps for the main contribution types (as well as the general overriding Total Super Balance Cap of $1.6M restriction), there are specific measures that may suit particular circumstances where additional contribution strategies may be relevant and beneficial. Always consider the particular circumstances of the individual and look beyond the basic contribution caps.

 Bob Locke – CA SMSF Specialist – CEO of Practical Systems Super

The information and examples provided in this article are general in nature and do not take into account personal circumstances, needs, objectives or financial situation. This information does not constitute financial or taxation advice. Before acting on any information in this article, the reader should consider its appropriateness in relation to their personal situation and seek advice from an appropriately qualified and licensed professional.