What is a contribution?

The ATO has taken an economist’s view of a contribution.  Consequently, a contribution is seen as any amount which increases the capital of a super fund.

An amount which is received as income, profit or gain from or sale of an existing investment of the fund will not constitute a contribution.

While a benefit rollover or transfer will be a contribution for taxation purposes, these are expressly excluded from being counted as contributions for the purposes of the contribution caps and the SIS contribution rules.

Comment: Although the Draft Ruling does not address the issue, a loan to the super fund will not be treated as a contribution.