Some SMSF practitioners have revealed the process involved with year-end concessional contributions reserving strategies when interacting with the ATO has not been smooth given it is a legal action to execute.
“This is an SMSF-specific measure. So basically the SMSF rules allow a contribution to be allocated to the member within 28 days of the next month and where this really comes into play is if we have a June contribution we can allocate in the next financial year,” Accurium technical superannuation adviser Jason Hurst explained.
Hurst pointed out the strategy allows SMSF members to claim a tax deduction for the following income year’s concessional contribution in the current financial year.
However, attendees at SMSF Professionals Day 2026, co-hosted by selfmanagedsuper and Accurium in Sydney on Tuesday, indicated they were often facing a hurdle to the process when receiving a response from the ATO.
“The [delegate] comments were that every year they have done it [on behalf of a client] there has been an excess [concessional contributions cap] assessment [from the ATO] and the client has to go back to [their adviser or accountant] and say ‘please look at this form and fix it up’,” Hurst acknowledged.
“So that’s a little bit frustrating, but it’s certainly a valuable strategy for a client. However, it is unfortunate and you might have to follow this up a bit more.”
He said the procedure involved when the unused concessional contributions cap carry-forward provisions are taken up is completely different and a lot more streamlined.
“[When you are using the] carry-forward rules, you don’t have to really follow up anything because the ATO does that all behind the scenes,” he noted.
“However, the reserving strategy requires a little more work [on everyone’s behalf] it seems.”
SMSF Professionals Day will be held in Brisbane on 25 May and will also feature an online presentation on 28 May. Click here to register for the event.
Darin Tyson-Chan
Editor
Darin is the founder and publisher of Benchmark Media, an independent publishing house whose mastheads include financialobserver, selfmanagedsuper and smstrusteenews. He has been covering the financial services space for over a decade and in this time he has worked for a variety of trade publications. Darin has also written for the Money section published in The Sydney Morning Herald and The Age.
Articles by Darin