Limit use of self-managed super fund trust deed clauses

The government will ensure the integrity of the annual superannuation contribution caps by making sure that certain trust deed clauses cannot be used to avoid counting against the caps what would otherwise be excess contributions. There have been situations where a clause is inserted into the trust deed of a self-managed superannuation fund in an attempt to circumvent the excess contributions tax.

This measure will deal with situations where a fund may include such a clause to treat amounts that would otherwise have been considered as contributions to the fund (for example, as they have been accepted by the fund and intermingled with other fund assets and investments) as not having been accepted by the fund, if those contributions would lead to a breach of the contributions caps.

Under this measure, the fund will be deemed to have accepted such contributions, notwithstanding the trust deed clause, if the contributions have not been returned promptly and have in effect been intermingled with assets of the fund.

More information For more information, see MYEFO 2011-12.