SMSFs running multiple pension accounts could face tax complications in relation to their recontribution strategies, an expert has revealed.

The changes to contribution rules may trap failed downsizer contributions within an SMSF rather than returning them to the member, according to an SMSF technical expert.

SMSF looking to cash out and recontribute funds to reduce the taxable component of their balance should use a second SMSF to park their tax-free savings.

The ability to put more money into a super fund is not the only advantage SMSF members can enjoy from using the downsizer contribution provisions.

A range of contribution rule changes has created an ideal situation for super fund members, but the correct implementation order needs to be followed to maximise the benefits.

The new contribution rules to take effect on 1 July 2022 contain a subtle difference to the current legislation requiring a work test to be satisfied.

Contribution strategies involving salary sacrifice arrangements should be set up well before the end of the financial year.

Recontributions into superannuation to offset the COVID-19 early release of super can soon start, but the ATO has warned an approved form and process must be used.