There are minimum standards for accepting contributions into your SMSF, and the trust deed of your fund may have more rules. Whether a contribution is allowable depends on:
- whether you have the member’s tax file number (TFN) – if not, you can’t accept member contributions
- 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 can’t accept non-mandated contributions for members aged 75 or over
- whether the contribution exceeds the member’s fund-capped contributions limit.
Generally you can’t accept an asset as a contribution from a member, but there are some exceptions.
If your SMSF will receive contributions from employers (other than related-party employers), you’ll need an electronic service address to receive the associated SuperStream data.
Member’s tax file number
When a member joins your fund, ask for their TFN and provide it to us. You can do this when you register the fund or when a new member joins.
If a member hasn’t quoted their TFN:
- your fund can’t accept member contributions for them, such as personal and eligible spouse contributions
- your fund has to pay extra tax on some contributions made to that member’s account
- the member may not be able to receive super co-contributions
- there may be administrative delays if we can’t identify the member from the information you’ve provided.
A member is not required by law to provide 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 super 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.
Non-mandated contributions
Non-mandated contributions 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
- super co-contributions (and other contributions made by the ATO)
- eligible spouse contributions
- contributions made by a third party, such as an insurer.
You can accept non-mandated contributions in the following circumstances:
- Members under 65 years of age
You may accept all types of non-mandated contributions. However, you can only accept personal contributions made by the member if you have their tax file number (TFN). - Members aged 65 or over but under 70
You may accept all types of non-mandated contributions if you have the member’s TFN and the member is gainfully employed on at least a part-time basis*. - Members aged 70 or over but under 75
You may only accept employer contributions and personal contributions made by the member. You must have the member’s TFN and they must be gainfully employed on at least a part-time basis*. For a member turning 75, the contribution must be received no later than 28 days after the end of the month that the member turns 75. - Members aged 75 or over
You can’t accept non-mandated contributions at all.* ‘Gainfully employed on at least a part-time basis’ means the member is gainfully employed for at least 40 hours in a period of 30 consecutive days in each financial year in which the contributions are made. Unpaid work does not meet the definition of ‘gainfully employed’.
If you receive a member contribution and you don’t have the member’s TFN, you need to return the contribution within 30 days of becoming aware that you have received it, unless the member’s TFN is quoted to you within that period.
In specie (asset) contributions
In specie contributions are contributions to your fund in the form of an asset other than money.
Generally you must not intentionally acquire assets (including in specie contributions) from related parties of your fund. However, there are some significant exceptions to this rule, including:
- listed shares and securities
- business real property (land and buildings used wholly and exclusively in a business).
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