This strategy allows a taxpayer to claim two deductible superannuation contribution limits in the one year by bringing forward the following years limit as well.

So, for example, a 49 year old self employed accountant can claim $60,000 of deductible superannuation contributions in their 2016 tax return, instead of only $30,000 (but none in their 2017 tax return).

This contributions strategy appeals to taxpayers who have an abnormally high income in one year, are retiring in the following year, or expect lower income in the following year.

The ‘contributions reserving strategy’ is confirmed by the ATO in ID 2012/16 and TD 2013/22 and states that a concessional contribution made in one income year, but allocated to the member under the SIS Regulations in the following year (i.e. by 28 July), is counted as a concessional contribution (for capping purposes) only in the year in which it is allocated.

In addition, the deduction for the contribution is claimed in the income year in which the contribution is made to the fund.

Before the contributions reserving strategy can be implemented the super fund trust deed will need to be reviewed to ensure it allows contributions reserving. In addition, certain trustee resolutions and paperwork will need to be prepared.


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