The SMSF double contribution strategy (also known as a contributions reserving or deferred allocation strategy) allows certain self-managed super fund (SMSF) members to effectively claim up to two years’ worth of concessional tax deductions within a single financial year by carefully timing and allocating contributions.

Here’s how it works in simple terms:

• Make personal concessional contributions to your SMSF in June — ideally just before the financial year ends.

• Have part of those contributions received by the fund in June and reported for tax purposes in the current year.

• Elect not to allocate some of those June contributions to your member account until the next financial year(e.g., after 1 July), taking advantage of the SMSF trustee’s ability to hold them in an unallocated reserve for up to 28 days.

Because of the way the tax and cap rules work:

• The SMSF can include the full amount received in this year’s assessable income and you can claim the deduction on your personal tax return for this year.

• Only the portion actually allocated to your member account counts against this year’s concessional cap, while the deferred portion counts against next year’s cap once allocated after 1 July.

With the 2026 concessional cap expected to be $30,000, this can allow up to $62,500 of contributions in June — comprising $30,000 this year plus $32,500 of next year’s cap — to be used for a deduction in the 2025–26 tax yearwithout exceeding caps.

Key points to be aware of:

• The SMSF trust deed must allow contribution reserving.

• Proper documentation (trustee minutes, notices of intent to claim a deduction, and an ATO Request to adjust concessional contributions form) is required.

• This is a timing strategy — it doesn’t increase overall caps, it simply uses the next year’s cap early.

Contact us if you would like to know how to implement the above strategy.

e: advisors@hksrussell.com
t: + 61 7 3177 4120

Posted on March 2, 2026 by Charisse Russell - Articles