Contributions to Reserves

The Draft Ruling suggests that a deduction for a contribution which is made to the reserve of a Super Fund will not qualify as a deduction as the contribution is not made for the purpose of providing superannuation benefits for a particular member or class of members.

A deduction for a contribution which is allocated to a contributions pending account will be deductible (assuming the other requirements are satisfied) if the contribution is allocated to a particular member within 28 days of the end of the month in which the contribution was received.

Different considerations will apply where the contribution is made to finance defined benefits.  In this situation, the deduction will still be deductible even though the contribution is not made for a particular member.