There are specific rules regarding contributions and rollovers to your SMSF.

Contributions

A contribution is a payment made to your fund in the form of money or an asset other than money (called an ‘in specie’ contribution). You must allocate contributions to each member’s account within 28 days after the end of the month that you receive them.

• You must accept contributions according to:
• your fund’s trust deed
• the ‘contribution standards’ in the super laws
• any investment restrictions.

Whether your fund can accept contributions for a member will depend on:

• the type of contribution
• the age of the member
• whether they have quoted their TFN
• whether the contribution is a fund-capped contribution.

If the governing rules of your fund allow it, your SMSF can generally accept:

• employer contributions
• personal contributions
• salary sacrifice contributions
• super co-contributions
• eligible spouse contributions
• in specie contributions

As a trustee, you generally cannot acquire non-cash assets from related parties, such as:

• fund members
• their families and partners
• related companies and trusts.

There are some significant exceptions, including:

• listed shares and securities
• business real property (land and buildings used wholly and exclusively in a business).

Rollovers & transfers

Once your fund is established, a member can rollover or transfer some or all of their existing super benefits from other super funds.

Before they can do this, they need to provide proof to their former super fund that your SMSF is a regulated fund and is eligible to receive rollovers. They can obtain proof by visiting superfundlookup.gov.au

Members of your SMSF can use a Request to transfer whole balance of superannuation benefits between funds (NAT 71223) form to rollover the whole balance of their super benefits to your fund.

They must also meet the requirements of the fund they are leaving. Generally, when the ABN of your fund first appears on SFLU, a message will show that the application is still being processed and provide an estimated date for completion.

At this stage, no rollovers or super guarantee payments can be accepted by your SMSF.

Once your application is fully processed, the status of your fund will be updated to appear on SFLU as ‘Registered – Status not determined’. When this status appears the fund will be able to accept transfers, rollovers, directed termination payments and contributions.

Your fund’s status will be updated after lodgment of its first SMSF annual return when it will be assessed as either a ‘Complying’ or ‘Non-complying’ fund.

If your fund is assessed as a complying fund a Notice of compliance will be issued.  

ProAdvisory is a licensed financial adviser and Accountant and can help you prepare, lodge and follow up the administration associated with rollovers and transfers.

More information: Contact the SMSF expert ProAdvisory.