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Investing & Super / Self-Managed Super Fund / SMSF resources & articles / How to roll over super and contribute to an SMSF

How to roll over super and contribute to an SMSF

Learn about the types of contributions you can make to a self-managed super fund (SMSF) and other factors to consider for your retirement savings.

 

Getting money into your SMSF

Before your SMSF can receive money from another super fund, make sure the fund is set up, and its details are up to date with the Australian Taxation Office (ATO). This includes having an Australian Business Number (ABN), a 'registered' or 'complying' status on Super Fund Lookup, an active electronic service address (ESA) that supports rollovers, and an SMSF bank account recorded with the ATO. 

The SMSF bank account can be used to receive rollovers and contributions, receive investment income, and pay fund expenses and liabilities.

There are 3 main ways an SMSF's balance can grow

  • Rollover of existing super from another fund
  • Contributions from employers, members, spouses or, in some cases, the government
  • Investment earnings generated from assets already held by the fund, such as interest, dividends, distributions and capital growth

This money may be invested in line with your fund's investment strategy and superannuation rules, with any earnings generally remaining within the fund until they're eligible to be paid out.

Rolling over super into your SMSF

What is a rollover?

It's when existing super is transferred from one super fund to another, such as from an industry or retail fund into an SMSF.

APRA rollover

Getting your SMSF ready for a rollover 

  • Before requesting a rollover, make sure your SMSF's details are up to date and it's ready to receive the rollover
  • Check the ATO's rollover requirements and contact your transferring fund for any additional requirements that may apply
  • Your SMSF administrator or accountant will usually do this for you
  • Missing or inconsistent details could result in delayed or rejected rollover requests

Important: Check your insurance before rolling over

Rolling over from an industry or retail super fund may mean you lose any insurance cover attached to your account, such as life, total and permanent disability, or income protection insurance.  

Before rolling over, review any insurance and benefits in your current fund. These can't be transferred to your SMSF, so you may need separate cover or a 'partial rollover' to keep some super in your current fund. Check with the fund about any other steps needed to retain your insurance.

How a rollover is initiated  

When you are prepared, you can request a rollover from your existing fund.

You can start the process through your MyGov account, or by contacting your previous fund directly. Partial rollovers are unable to be completed through MyGov.

For more information, read the ATO's guidance on rollovers

Making contributions to your SMSF

A contribution is money or an eligible asset added to a member's super balance. It may come from an employer, the member, their spouse or, in some cases, the government. Superannuation laws set rules and limits about what contributions an SMSF can accept.

Types of contributions

There are two main types of contributions. Different rules and annual caps apply to each type.

Concessional contributions

These contributions are generally contributions made from before-tax income. They can include:

  • Employer contributions, including Super Guarantee contributions
  • Salary sacrifice contributions
  • Personal contributions for which a tax deduction is claimed

These contributions are generally taxed when they're received by the fund and count towards the concessional contributions cap.

Non-concessional contributions

They're generally made from money that's already been taxed. This may include personal contributions made from savings or other after-tax  money. A separate cap and rules apply to these contributions.

Common ways contributions are made

  • Employer contributions: Transferred to your SMSF using the fund's ABN, bank account details, and an ESA (for contributions sent through SuperStream, e.g. from non-related employers)
  • Personal contributions: Members can contribute their own money directly to the SMSF from personal savings or income
  • Spouse contributions: A spouse can make contributions on behalf of an eligible SMSF member

 

SMSF contributions

How contributions are paid

Contributions are usually paid as cash into the SMSF's bank account. In some cases, eligible assets, such as listed shares and other investments, can be transferred to the fund instead. The transfer must meet superannuation rules.

Contribution caps and rules

Contribution caps apply to contributions made to super each year, and exceeding these caps may result in additional tax or other consequences. The rules that apply may depend on the member's age, their total super balance, or the type and amount of the contribution.

Important

  • Check contribution caps and eligibility: Confirm you are eligible to contribute and that the amount stays within the contribution caps to avoid excess contributions as these can involve extra tax
  • Record and report the contribution: Keep records of all contributions and ensure they are correctly classified and reported in the SMSF's annual return. Your accountant or SMSF administrator may assist you with this, if you use one

 

Summary

  • Confirm that members are eligible to make and receive contributions and stay up to date with the current contribution caps  
  • Keep records of all contributions, make sure they're correctly classified and report them in the SMSF's annual return. If you have an accountant or SMSF administrator, they may assist you with this  
  • Make sure your SMSF's bank account is used solely for fund transactions and kept separate from any transactions unrelated to the SMSF  
  • Setting up and running an SMSF involves ongoing legal and administrative responsibilities. Consider seeking professional advice before making decisions about moving money into or out of an SMSF  
  • Be wary of unsolicited advice. If you're ever contacted by someone encouraging you to roll your super into an SMSF, or invest in a specific opportunity, treat it with extreme caution. If in doubt, speak with an independent and licensed adviser, or visit ASIC's MoneySmart website

Rules and duties of SMSF trustees

Read more

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Distributed by Commonwealth Bank

Things you should know

SMSFs are complex and involve legal, administrative and compliance responsibilities. SMSF trustees (or directors of a corporate trustee) are responsible for managing the fund and ensuring it complies with all applicable requirements such as superannuation, tax and trustee obligation.

This article is intended to provide general information of an educational nature only. The information may include general advice but does not take into account your individual objectives, financial situation, needs or tax circumstances, and so you should consider the appropriateness of the advice having regard to your circumstances before acting on it. Where applicable, you should obtain and read the relevant Product Disclosure Statement (PDS) and other important disclosure documents before making a decision about acquiring or continuing to hold a product. You should consider seeking independent professional financial, tax and/or legal advice before making any decision based on this information.

The above information is not tax advice. Taxation laws are complex and subject to change. Commonwealth Bank does not provide tax (financial) advice under the Tax Agent Services Act 2009 (Cth). You should consider seeking independent tax advice from a registered tax agent, accountant or adviser before you make any decisions based on this information.

The information in this article and any opinions, conclusions or recommendations are reasonably held or made, based on the information available at the time of its publication but no representation or warranty, either expressed or implied, is made or provided as to the accuracy, reliability or completeness of any statement made in this article.