When Is A Contribution Not A Contribution?

When Is A Contribution Not A Contribution?

For those who are self managing their superannuation, making a contribution into the fund should be a relatively simple exercise of depositing cash in to the fund account, or transferring other assets into the fund. However, nothing in the world of superannuation is ever simple, and knowledge of current Tax Office rulings is a must if the fund is not to be disadvantaged. The timing of the contributions is one crucial area where the fund trustee must take nothing for granted, as the determination of the exact date that the fund receives the contribution actually depends on the type of contribution.Since the purpose of a superannuation fund is to benefit the members, the motivation of the person making the contribution also becomes a primary consideration. The actions of the person making the contribution must increase the capital value of the fund, and benefit some or all of its members. When managing DIY Super fund managers need to understand the different ways in which a contribution can be made to a self managed fund.Where checks are dishonored by the bank, contributions will not be accepted and considered. While the most frequent method of making a contribution is by cash, check or electronic transfer, the timing points are different. In the case of cash, the contribution is made when the trustee physically takes possession of the cash. For electronic transfers, the important date is not when the contributor asks for the funds to be transferred from their account, but when the funds are actually received into the super fund account.Contributions by check are generally considered to be received when the trustee has taken physical possession of the check. Post dated checks can be accepted as contributions when they can be presented to the bank and when they are honored. Dishonored checks cannot be considered to be a contribution.Contributions to funds made by transferring an existing asset are considered to be made when legal ownership has been formally transferred. The ATO will also accept beneficial ownership, which sometimes happens before legal ownership, as a contribution.Lesser known examples are that creating a contractual, legal or equitable right in a super fund that didn't previously exist is also a contribution, and also when the value of an asset owned by a super fund is increased. When a liability owed by a super fund is paid or a debt owed by a super fund is forgiven are other examples where, through an http://www.smsfbrisbane.com.au/New-SMSF.html">SMSFcommon methods of contributions as cash, check, or electronic transfer are known to have varying timing points.

POST COMMENT

Knock An Elephant On His Butt With Good Kung Fu Kicks! Universal Remotes Made Simple Choose The Best Forest Guide For A Great Adventure How Do Floral Essences Heal Ignition Cylinder – What to do if it Creates Fuss! Creative Methods of Saving Dollars Car Donations: A Charitable Act Theodosius The Emperor - Roman Empire 390 AD Least Expensive Cities in America Watch The Ultimate Fighter Season 12 Episode 12 Declutter Ideas : Organize In Less Than 10 Minutes Help Your Community: Donate Your Car The Heartbeat Of A Town Is Its Nightlife