Payday Super, commencing on 1 July 2026, generally requires an employer to make their superannuation payment within 7 days of the relevant salary payment. The receiving superannuation fund generally has 3 days to allocate it, or they must return the payment. Where does that leave the recontribution strategy for both personal and employer contributions paid into SMSFs. Fortunately, SMSFs are exempt so the use of deferred contributions will still be allowable.

This brings me to a question I was recently asked concerning an unusual application of the strategy. John will turn 75 on 3/05/2026. He will be retiring on 1/07/2026. To maximise the deductible contributions he can make to super in this, his final year of employment, he would like to make a maximum concessional contribution now, plus a “reserve” contribution of the same amount before 28 June 2026 (within 28 days after the end of the month in which he turns 75). As the contribution will be made in June, can its allocation be deferred until by 28th July, thereby ensuring it does not breach the concessional cap this year whilst ensuring that the tax deduction can still be taken this year.

The answer is yes as Reg 7.04 allows trustees to accept a contribution up to 28 days after the end of the month in which the member turns 75 and Ref 7.08 requires trustees to allocate contributions received in a month to be allocated not later than 28 days after the end of the month.