“A contribution can be made by supplying the fund trustees with a promissory note, on or before 30 June, provided it is cashed in the first week of July.”

He added that a promissory note can also be useful to back up a contribution bank transfer instruction, made by 30 June, but not finalised by then.

“This is timely right now if members have got a cash flow issue,” he told SMSF Adviser.

“For example, if a member wants to make a contribution from themselves or a company and they don’t have the cash to make it but still want to get the tax deduction for this financial year, they can do a promissory note which will then be regarded as contribution for this financial year.”

However, he warned that the note has to be honoured within a week and cannot “sit around” indefinitely.

“Promissory notes are ideal for short-term liquidity problems where a member may give instructions today (27 June) but the transfer of funds could take three days so won’t hit the fund until 1 July.”

“Additionally, there may not be liquidity problems in the fund but rather the system slowing things down, and a promissory note can be used in this instance as well.”

Busoli added that pensions may also be paid by the fund issuing a promissory note to the member by no later than 30 June.

“A promissory note can be used for pensions to a lesser extent,” he said.

“However, to be acceptable, the fund will need to have sufficient cash to cover it on issue and it must be cashed within the first week of July.”

He said, although the promissory note can be used in this circumstance, it could be questioned as to why the pension wasn’t paid by the due date if the fund had the cash to do so.

Alternatively, he said contributions may also be made in specie by supplying the fund with fully completed transfer documents no later than 30 June.

“Be careful, though, as a transfer from an entity other than the member or spouse will be a concessional contribution.”

“Remember that in specie payments to members will not assist with meeting minimum pension requirements as these are treated as lump sum drawdowns by default.”