A super contribution is:
• deductible in the financial year it is made, and
• counts towards a member’s contributions cap in the financial year it is allocated to the member’s account.
The super law requires a super fund to allocate a contribution to the member’s account within 28 days after the end of the month it is received. Practically this means:
• In an APRA regulated retail or industry fund, the contribution is generally allocated to the member’s account immediately
once the contribution is made.
• In an SMSF, subject to the fund’s governing rules, the fund may be able to allocate a personal contribution made in June to
a member’s account in the first 28 days of July. Where this occurs, it is still possible to claim a tax deduction for the
contribution in 2019-20, but the contribution will count towards the member’s concessional contributions cap for 2020-21.
The ATO in its Tax Ruling TR 2010/1 outlines the way in which funds are typically transferred and when the contribution is made:
| If the funds are transferred to the superannuation fund by… |
A contribution is made when… |
| Making a cash payment | The cash is received by the superannuation provider |
| An electronic transfer of funds, including using the clearing house system | The funds are credited to the superannuation provider’s account |
| Money order or bank cheque | The money order or bank cheque is received by the superannuation provider, unless the order or cheque is dishonoured |
| Personal cheque (other than one that is post-dated) that is presented and honoured with cash or its electronic equivalent | The personal cheque is received by the superannuation provider, so long as the cheque is promptly presented and is honoured |
| Post-dated cheque that is presented and honoured with cash or its electronic equivalent | The cheque is able to be presented for the payment (that is, the date on the cheque), so long as the cheque is promptly presented and is honoured. |
| In specie transfer of listed shares | The superannuation provider obtains a properly executed off-market share transfer in registrable form. |
| In specie transfer of real property | When the superannuation provider acquires the beneficial ownership of real property, which is when the fund obtains possession of a properly executed transfer that is in registrable form together with any title deeds and other documents necessary to procure registration of the superannuation provider as the legal owner of the land. |
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