Learn key SMSF contribution rules, compliance tips, and reporting essentials for 2024–25. Stay updated and join Practitioners’ Edge 2025 for expert guidance.

The end of the 2024-25 financial year has come and gone and accountants will now turn their mind to preparing the 2025 self-managed superannuation fund (SMSF) financial statements, annual return and audit. As part of this process, they can face critical technical and compliance hurdles, particularly around superannuation contributions. Ensuring accurate and compliant reporting is vital not just for audit, but also for the confidence and tax outcomes of your clients. Here are the essential issues every practitioner needs to have on their radar as part of the 2024–25 year compliance reporting season, along with details of the training opportunity to help you master them.

1. Timing matters: Allocating SMSF contributions to the right year

Determining the correct financial year for each contribution is fundamental. As clarified by the ATO in TR 2010/1, the key dates are:

Electronic and cash contributions: Recognised when deposited and cleared in the SMSF’s account. For this year, only what is in your client’s SMSF bank statement as at 30 June 2025 counts for 2024–25 reporting.
Cheque and money order (as uncommon as they are): Counted when delivered—so long as promptly banked and cleared.
In-specie contributions: Permissible assets like listed shares or business real property are generally recorded when the SMSF receives beneficial ownership, even if legal title lags behind. However, reliable supporting documentation is essential.

Key risk: Contributions processed at year end, whether EFT or in-specie, may be pushed to the following year if not received in time. This can affect member contribution caps and deductibility, so bank reconciliations and precise date records are non-negotiable.

2. Know the source: Correctly identifying contributions

It is essential to document and classify each contribution accurately:

Employer contributions: Subject to concessional caps, usually taxable to the SMSF. Special rules apply to contributions made via a clearing house.
Spouse contributions: These should be marked non-concessional (not deductible and not assessable).
Personal member contributions: Unless a notice of intent to claim a deduction is lodged and acknowledged, these are non-concessional.

Where contributions are sourced from related entities such as companies or trusts, careful attention is required to document whether the payment is an employer contribution or will be recorded as being made by the member.

3. Deductible personal contributions: Meeting every condition

To claim a personal contribution deduction, all requirements must be met:

The SMSF must be able to accept the contribution under SIS regulation 7.04.
For members aged 67–74 (or up to 28 days after the month they turn 75), the work test or exemption must be satisfied.
A valid notice of intent (NAT 71121) must be given and acknowledged, before any withdrawal, rollover or pension commencement and before the earlier of personal return lodgement or the following year’s end.
The SMSF trustee must provide formal acknowledgment before reporting deadlines.
The deduction must not exceed the member’s assessable income.

Missing just one step may void the member’s tax deduction claim, impacting both their tax return and the fund’s accounts.

4. Contribution reserving: Get the timing and reporting right

A typical end-of-year strategy is making a June 2025 contribution but allocating it to the member’s account in July, spreading capping and maximising deductibility. The procedures are:

Allocations from reserves must occur within 28 days of the end of the month in which the contribution was received.
The member claims the tax deduction in 2024–25, while the contribution is allocated to their 2025–26 cap.
Completing the ATO’s adjustment form (NAT 74851) for concessional contributions is crucial for correct reporting.
Additional steps may apply for non-concessional “reserved” contributions due to administrative complexities.

Errors here often trigger excess contributions assessments, so precision with forms and timing is essential.

5. Five practical steps for year-end accuracy

Scrutinise bank statements and transfer documentation for each payment.
Confirm and document the source and purpose of every contribution.
Double-check that all deduction notices and work test requirements have been met.
If using contribution reserves, ensure all reporting obligations are completed.
Keep a robust audit trail for all actions and decisions.

Stay ahead: Get your SMSF contribution questions answered at The Practitioner’s Edge

The Practitioner’s Edge conference is dedicated to demystifying SMSF compliance and tax preparation for the 2025 compliance reporting season. Our senior SMSF educator, Anthony Cullen, will present a deep dive into the nuanced intersection of SIS and tax rules, answering:

Which year should a contribution be reported in, and why does it matter for contribution caps and deductions?
How do the contribution caps and contribution acceptance rules interact?
What are the simple mistakes that can see deduction strategies unravel, and how can you prevent them step by step?

You will also learn from real-world scenarios, stay up to date on best practices, and have the opportunity to ask your technical SMSF questions live.

Choose from SMSF or tax streams, in person in Melbourne, Sydney, Brisbane, or online - with up to 10.5 CPD hours available.

Do not let small errors derail your compliance or your client’s tax position. Register now for The Practitioner’s Edge and ensure your SMSF processes are robust, compliant, and up to date for a successful 2025 SMSF compliance reporting season.

Find out more and secure your place at Australia’s premier SMSF and tax event today.