With the end of the year almost upon us there will be members who will have difficulty ensuring their contributions hit their SMSF’s bank account in time. It’s not sufficient for the contribution to leave the contributor’s account before June 30th, they need to be received by the SMSF’s bank account by Monday. A contribution can be made by supplying the fund trustees with a promissory note, on or before 30th June, provided it is cashed in the first week of July. This would be useful to back a contribution bank transfer instruction, made by 30th June, but not finalised by then.

Alternatively, contributions may also be made in specie by supplying the fund with fully completed transfer documents no later than 30 June. Be careful though, as a transfer from an entity, other than the member or spouse, will be a concessional contribution.

Pensions may also be paid by the fund issuing a promissory note to the member by no later than 30 June. To be acceptable, the fund will need to have sufficient cash to cover it on issue and it must be cashed within the first week of July. Remember that in specie payments to members will not assist with meeting minimum pension requirements as these are treated as lump sum drawdowns by default.