The Tax Office has released a Draft Taxation Ruling in which the Commissioner explains his preliminary views on the meaning of the word ‘contribution’ for superannuation purposes.

According to the draft ruling, an amount will be considered a superannuation contribution if the amount increases the capital of a receiving superannuation fund.

A contribution includes a payment of money and an in-specie contribution. The timing of when the contribution is taken to have been received by a fund depends on the nature of the contribution. 

• The timing of a contribution is important for superannuation guarantee purposes, and determining the relevant income year for deducting the contribution and including it in the assessable income of a receiving fund.