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Returning contributions

There are rules for accepting contributions that all trustees need to know.

Last updated 14 December 2022

For your self-managed super fund (SMSF) to receive concessional tax treatment, you must elect to be a regulated super fund and comply with the provisions and regulations of the:
  • Superannuation Industry (Supervision) Act 1993 (SISA)
  • Superannuation Industry (Supervision) Regulations 1994 (SISR).

Before accepting a contribution, you need to know what contributions you can and can't accept. If you get it wrong, your fund can be made non-complying.

This will generally mean that all assets and income of the fund will be taxed at the highest marginal rate in the year the fund is made non-complying. Income continues to be taxed at the highest rate while the fund remains non-complying.

If receive a contribution from or on behalf of your member.

Contributions may only be refunded in circumstances tightly prescribed by legislation.

You must report the total contribution and not the contribution less any benefits paid to the member in the same year.