Capped Super Fund Contributions

Referring to ATO ID 2012/79, trustees of a SMSF are required to return any contributions that exceed the fund capped contribution limit. Presently, this limit is $450,000 for a member under the age of 65 on 1 July or $150,000 over the age of 65.

This limit applies separately to each contribution and not to the aggregated contributions over the year.

In the ATO ID it reviewed a situation of three parcels of shares being contributed to the SMSF via an in specie contribution on the same day to the superannuation fund. In essence the three parcels of shares when totalled exceeded the cap, whilst no parcel as individual exceeded the cap . Surprisingly, the ATO took the view that the transfers constituted three seperate contributions, so the cap was not breached.

REMEMBER, the above are issues that auditors focus on when it comes to the audit of a SMSF. Our audits for funds start from $300 and follow a comprehensive audit plan.

DISCLAIMER: The above is general advice only, you should not act on this advice without consulting a professional adviser to discuss your personal circumstances.