In a recent podcast, Kim Guest, senior technical services manager for Colonial First State, said that timing is critical when making contributions and ensuring finalised accounts for the end of the financial year.
Guest said the timing is determined by when the contribution is received, not when it leaves the member’s hands, and as this year 30 June falls on a Sunday, those transactions can be finalised no later than 28 June.
“Even if using EFT, this will be an issue this year as there may be a settlement or transfer period of 24 hours or more. If you go in on the Saturday and request a transfer, it may not get there until Monday because financial institutions may not process the transfers on the weekend,” Guest said.
“And that will show up in the super fund account more than likely on or after 1 July, which is in the next financial year, and therefore is too late.”
However, Guest said SMSFs have a bit more flexibility with contributions made by cheques and things such as promissory notes, as well as in-specie contributions.
“These could be made up to and including Sunday, 30 June this year if the trustee is available to receive the contribution on that day” she said.
“For example, if you make a contribution via cheque, provided that cheque is not post-dated, it’ll be taken to have been made on the date that the fund receives that cheque, provided that once it’s received, it’s promptly presented and honoured.”
Guest added that regarding in-specie contributions to an SMSF, where an eligible asset is transferred via a formal registration process, it’s taken to have been received as a contribution when the fund receives those properly executed transfer forms.
“In an SMSF there are people with different hats on because if I’m a member, and trustee of my self-managed super fund, I’m giving the fund a cheque which is essentially me writing a cheque and then giving it to myself,” she said.
