Use the contribution reserving strategy in your SMSF to make two concessional contributions in June and claim a $62,500 tax deduction in 2025-26. Strategy exclusively available to SMSF members only!
The concessional cap is $30,000 for the year ending 30 June 2026. It rises to $32,500 from 1 July 2026.
This strategy lets you contribute $30,000 (allocated this year) plus $32,500 (deferred to next year) and deduct the full $62,500 on your 2025-26 tax return. It does not include any unused carry-forward caps.
Only SMSFs can do this. Industry funds must allocate contributions within days, but SMSFs have until the 28th day of the following month.
How the contribution reserving strategy works
1. Make your normal concessional contribution of up to $30,000 during 2025-26 and allocate it to your member account as usual.
2. In June 2026, make a second separate contribution of $32,500.
3. The trustee resolves to hold this amount unallocated until at least 1 July 2026.
4. Both contributions are received by the fund in 2025-26, so you claim the full $62,500 deduction in your 2025-26 tax return.
5. The second $32,500 is allocated in July 2026 and counts only against your 2026-27 cap.
Key requirements
– The two contributions must be separate bank transfers (do not combine them).
– Your SMSF trust deed must allow deferred allocation.
– Trustee must pass a resolution to defer the second contribution.
– Allocate the deferred amount to your member account by 28 July 2026 at the latest.
– Lodge the ATO’s “Request to Adjust Concessional Contributions” form (NAT 74851) by the time you lodge the SMSF annual return and your personal tax return (we will complete this for Grow SMSF customers).
– Complete a Notice of Intent to claim a deduction for both amounts before you lodge your tax return.
Simple example
You have used $20,000 of your 2025-26 cap so far (including Super Guarantee).
– Contribute another $10,000 and allocate it normally.
– In June 2026 contribute $32,500 separately and defer allocation.
Total deduction claimed in 2025-26: $62,500.
The $32,500 counts against your 2026-27 cap only.
Steps to use the contribution reserving strategy happen in your SMSF
1. Deposit the $32,500 into the SMSF bank account in June 2026 with a clear reference.
2. Trustee passes resolution to defer allocation until July 2026.
3. After 30 June 2026, trustee passes resolution to allocate it.
4. Submit Notice of Intent and the ATO adjustment form.
5. Claim both on your 2025-26 tax return.
6. SMSF reports the first amount in 2025-26 and the second in 2026-27.
Important notes
This works best when your marginal tax rate is higher this year than next. Ideal for people who can control when and how their superannuation contributions are paid, for example business owners and those who receive their income from dividends and distributions, rather than salary and wages.
It uses next year’s cap early, so plan your 2026-27 contributions carefully. The contribution reserving strategy can still be used by salary and wage earners who are SMSF members, but you must take into account the mandatory 12% superannuation contributions that will be paid in the following financial year.
You must still meet the work test if aged 67-75 to make concessional contributions.
Get advice from your SMSF accountant or adviser before acting. Timing and paperwork must be exact. Additional fees will apply when implementing a contributions reserving strategy with Grow as there is additional work required to ensure the amounts are correctly recoded and the ATO notifications are completed to ensure an incorrect excess concessional contributions notice isn’t triggered. This is done via ATO form NAT 74851.
BONUS STRATEGY: Combine a contribution reserving strategy with a catch up concessional contributions strategy to claim up to 7 years of contributions at once (current year, next year and previous 5 years).
This is one of the few strategies available only to SMSFs. Done right, it delivers a clean extra tax deduction with no extra contribution cap used in the current year.
Act before 30 June 2026.
2 comments
Han Sulo
June 18, 2026 at 11:54 pm
I am 66 years old retiree therefore not subject to a work test to claim deduction for my personal $30K contribution to my SMSF.
If I make a second contribution of $32,500 into reserve now in June to be allocated in July 2026, will that be subject to a work test because I will turn 67 later in February 2027 ?
Kris Kitto
June 19, 2026 at 8:21 am
No, your second contribution of $32,500 made in June 2026 (while you are still 66) should not be subject to the work test, even though it is allocated in July 2026 and you turn 67 in February 2027.
Key reasons (based on current ATO rules and Grow SMSF guidance):
At age 66, you are not required to meet the work test to make personal concessional contributions or claim a deduction. The work test (or exemption) only applies once you reach age 67–74.
The work test requirement is assessed based on your age at the time the contribution is made to the fund (i.e., received into the SMSF bank account in June 2026), not the date it is later allocated to your member account or the financial year in which you claim the deduction.
Contribution reserving strategies explicitly allow a contribution received in one financial year to be allocated in the following year while preserving the tax treatment and compliance position from the year it was contributed. The original Grow SMSF article on this exact strategy notes that you must meet the work test only if aged 67–75 when making concessional contributions.
Practical points for your situation
Your $30k contribution (made now at age 66) is unaffected.
The additional $32,500 reserved contribution made in June 2026 will also qualify without a work test, provided it is properly documented as a personal concessional contribution with a valid notice of intent to claim a deduction.
Once you turn 67 (February 2027), any new contributions you make from that point forward would require you to meet the work test (or qualify for an exemption) to claim a deduction.
Recommendation: This is a technical area. We strongly suggest confirming the exact timing, documentation, and allocation details with your SMSF accountant or adviser before proceeding, as individual circumstances can vary.