Contribution Reserves in a SMSF

The Commissioner has just released an interpretive decision 2012/32, that basically says where you have a contributions reserve -- and the way it works is that essentially we may make a contribution into a fund this year, effectively if it was from an employer or if it's non-concession, if it doesn't go into their members account but goes into a reserve, then effectively if it's parked in that reserve in that instance, it's not going to be caught in their caps that year. It's only when it's allocated. Now division 7.2 of the [SYS] regulations says if you make a contribution during the year, you must allocate it within 28 days after the end of the month in which it has been contributed. So it's not good, say for example, in April or in March making a contribution and putting it up into reserve because you're only going to pull it out in the next year.
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