Aware Super Logo

Home

Getting money into super

Acceptance of contributions

Section: 2.3

A super fund has strict rules set by law for the acceptance of contributions. The table below summarises the rules for regulated superannuation funds to accept various types of contributions in accordance with SIS Reg 7.04.

Item If the member The fund may accept
1 Is under 65 Contributions that are made in respect of the member
1A Is not under 65, but is under 67 Contributions that are made in respect of the member that are:
(a) Mandated employer contributions  
(b) Employer contributions (except mandated employer contributions); or
(c) Member contributions
(d) Downsizer contributions
2 Is not under 67, but is under 70 Contributions that are made in respect of the member that are:
(a) Mandated employer contributions; or  
(b) If the member has been gainfully employed on at least a part-time basis during the financial year in which the contributions are made:
(i) Employer contributions (except mandated employer contributions); or
(ii) Member contributions; or
(c) Downsizer contributions; or
(d) If the member has not been gainfully employed, either on a full-time or a part-time basis, during the financial year in which the contributions are made, but all of the requirements mentioned in subregulation (1A) are satisfied for the member:
(i) Employer contributions (except mandated employer contributions);or
(ii) Member contributions
(3) Is not under 70, but is under 75 Contributions that are made in respect of the member that are:
(a) Mandated employer contributions; or  
(b) if the member has been gainfully employed on at least a part-time basis during the financial year in which the contributions are made - contributions received on or before the day that is 28 days after the end of the month in which the member turns 75 that are:
(i) Employer contributions (except mandated employer contributions); or
(ii) Member contributions; or
(c) Downsizer contributions, or
(d) if the member has not been gainfully employed, either on a full-time or a part-time basis, during the financial year in which the contributions are made, but all of the requirements mentioned in subregulation (1A) are satisfied for the member - contributions received on or before the day that is 28 days after the end of the month on which the member turns 75 that are:
(i) Employer contributions (except mandated employer contributions); or
(ii) Member contributions
4 Is not under 75 Mandated employer contributions or downsizer contributions

From 1 July 2020 contributions can be accepted for a spouse who is aged under 75. Contributions for a spouse aged between 67 and 75 can only be accepted if the spouse satisfied the work test during the year or is eligible for the one-year-work test exemption. Before 1 July 2020, a fund could only accept contributions for a spouse aged under 70.

Mandated employer contributions

Mandated employer contributions are:

  • Contributions required to be made under:
    • An industrial award
    • A determination
    • A notional agreement preserving state awards; or
  • Contributions made in accordance with salary sacrifice arrangement

Non-mandated employer contributions

Non-mandated employer contributions can include:

  • Salary sacrifice contributions
  • Personal contributions
  • Downsizer contributions
  • Contributions made by a third party, such as an insurer

Tax File Number (TFN) restrictions on contributions

If a member has not given their TFN, the superannuation fund provider can only accept employer contributions. All other contributions must be returned to the contributor within 30 days unless the member provides their TFN within that period.

This technical resource is intended for the use of financial advisers only. It is current as at the date of publication but may be subject to change. This publication has been prepared without taking into account a potential investor's objectives, financial situation, needs or objectives. Before making a recommendation based on this material, you should consider its appropriateness based on the client's objectives, financial situation and needs. Rainmaker Group is not a registered tax agent under the Tax Agent Services Act 2009. Your client should refer to a registered tax agent before relying on information published herein that may impact their tax obligations, liabilities or entitlements.

Last modified: Tuesday, November 3, 2020