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Re: Super contribution before becoming a member

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Initiate

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Can a person make super contribution into an existing SMSF before he becomes a member of this SMSF 2 months later? 

Thanks. 

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ATO Certified Response

Community Manager

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Hi @JanH

 

Thanks for your question.

 

@MegH is correct. If the person wants to make a contribution for themselves, they will need to be a member of the self-managed super fund (SMSF) first. Otherwise the fund won't be able to accept the contribution.

 

Of course, as @MegH has said, if the contribution is being made for someone who is a member (e.g. spouse contribution), the fund can accept it subject to the minimum requirements.

 

For more information about contributions you can accept, refer to our website.

 

Once the person has become a member of the SMSF, we need to be notified within 28 days. The details can be updated through a variety of channels including online at abr.gov.au, registered agent, phone or paper form.

 

You can check out the changes to your SMSF page on our website for more information.

 

Hope this helps.

 

Thanks,

 

ChrisR

2 REPLIES 2

Initiate

Replies 0

Unfortunately no - assuming the contribution is one being made by the person for themselves (as opposed to being made for someone else who is already a member), they have to be a member at the time the contribution is made.  Don't forget, though, that the first money they put into their account could be that contribution - they don't have to have transferred money from another fund first.  And to become a member, they might find it's automatic if they made a contribution or there may be some paperwork to sign - check the trust deed.

Also, remember that when a new member joins an SMSF, they also have to become a trustee or director of the corporate trustee (unless there are some special arrangements put in place where they have someone else do this on their behalf).  This has to happen immediately.  I mention it because there are other occasions (eg when someone LEAVES an SMSF) where there is a six month amnesty period before they also have to stop being a trustee / director.  This six month period doesn't apply when a new member joins the fund.

And don't forget to tell the ATO.

Most helpful response

ATO Certified Response

Community Manager

Replies 0

Hi @JanH

 

Thanks for your question.

 

@MegH is correct. If the person wants to make a contribution for themselves, they will need to be a member of the self-managed super fund (SMSF) first. Otherwise the fund won't be able to accept the contribution.

 

Of course, as @MegH has said, if the contribution is being made for someone who is a member (e.g. spouse contribution), the fund can accept it subject to the minimum requirements.

 

For more information about contributions you can accept, refer to our website.

 

Once the person has become a member of the SMSF, we need to be notified within 28 days. The details can be updated through a variety of channels including online at abr.gov.au, registered agent, phone or paper form.

 

You can check out the changes to your SMSF page on our website for more information.

 

Hope this helps.

 

Thanks,

 

ChrisR