Promissory Note Precaution

26 Jun 2019

Written by

David Busoli, Principal

There are always those who leave their super contributions to the last minute. As a contribution is not made until it is received by the fund, invariably, some don’t quite make it in time. As June 30 is a Sunday this year there are likely to be even more casualties than usual.

A contribution is made by cheque if the trustee receives it by June 30th, the cheque is banked in early July and it’s honoured – but who uses cheques these days? What’s more likely is that a bank transfer is activated this year but does not arrive in the fund until July. If this is a possibility a simple do-it-yourself cheque, other wise known as a promissory note, to cover the transfer amount should be handed to the fund trustee by June 30th. If the transfer is delayed there is no harm done as the promissory note has it covered. Remember to take a copy of the cheque or promissory note for audit purposes.

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