[The Auditors Institute Ltd]

Hi Martin

My view is that it is unusual to see a reserve used for non-concessional contributions but it would not be
grounds for the auditor to qualify their audit report on it.

This assumes that the SIS legislation has been followed along with the trust deed and the appropriate
paperwork has been prepared.

DBA Lawyers have a good article re contribution reserves at (& legal advice should be obtained if to use
a contribution reserve):

The ATO has details re the form to use to adjust concessional contributions and a reserve at:

https://www.ato.gov.au/forms-and-instructions/self-managed-superannuation-fund-request-to-adjust-concessional-contributions

At this page the ATO states that “This form cannot be used by a SMSF member using the reserve
strategy for non-concessional contributions.” This would suggest that non-concessional contributions
can be used in a reserve strategy (but do not need to use a form).

If other forum members have a view please let the forum know.

Thanks
The Auditors Institute