Q&A: What is the process for contributions reserving?

Q: My wife and I are the sole trustees of our SMSF. We are both between 60 and 65 and retired. We record all the trustee minutes and only use the accountant to submit the annual tax return and audit. All the SMSF’s assets are shares and fixed deposits under the SMSF name, not under the individual name. And in accumulation mode, I would like to use the contributions reserving strategy this year to offset my vast capital gains tax. I understand the strategy, but would you be able to confirm the process?

A: So this is a very complex area and it’s referred to as contribution reserving or unallocated contribution account. So even though it does say contribution reversing in the question, I’m assuming you are asking about contribution reserving. I didn’t change that. Just want to make sure that we did cover that point.