Every now and then, life throws up a big financial year.

Maybe you sold a business.
Maybe a property settlement came through.
Maybe you sold down some Bitcoin taking a huge profit…

And suddenly, that tax bill lands… and it’s eye-watering.

Here’s the part most people miss:
a high-tax year can be one of the smartest times to make super contributions — if you understand how to do it properly.

And if you run an SMSF, you may have even more flexibility than you realise.

The simple idea here is to offset tax when it hurts most. This is where strategic tax planning is vital.

Concessional super contributions are generally tax-deductible to the contributor (subject to caps and eligibility). That means:

• You reduce your taxable income

• You potentially reduce your tax payable

• The contribution is taxed at 15% inside super, rather than your marginal tax rate

When your marginal tax rate is high, the tax you have to pay reflects this. In simple terms - the higher your tax bill, the more powerful the deduction can be.

Where SMSFs get interesting: timing and control

Now let’s talk about something specific to SMSFs.

Unlike most retail or industry funds, an SMSF can (if the trust deed allows) hold unallocated contributions in a reserve account. This opens up a timing strategy that must be handled carefully — but when done correctly, can be incredibly effective.

Using a reserve: separating deduction from allocation

Here’s the concept at a high level (noting this is general information only):

1. A concessional contribution is made to the SMSF in the year you have the high tax bill

2. The contributor claims the tax deduction in that year

3. Instead of immediately allocating the contribution to a member account, the funds are held in a reserve account

4. The contribution is allocated to the member in the following financial year, in line with super law and ATO guidance

Why does this matter?

Because it allows:

• The tax deduction to be claimed when your income (and tax) is highest

• The concessional contribution cap impact to occur in a later year, when income may be lower

It’s a timing strategy - not a loophole - and it requires precision.

Why this can be powerful in the right year

For the right person, in the right circumstances, this approach can:

✔ Smooth out taxable income across years
✔ Help manage concessional contribution caps strategically
✔ Reduce pressure when income spikes unexpectedly
✔ Align super allocations with longer-term planning, not just tax panic

Most importantly, it gives trustees control - something SMSFs are designed for.

But let’s be very clear…

This is not a DIY strategy.

Reserve accounts are:

• Heavily scrutinised by auditors

• Closely watched by the ATO

• Highly dependent on trust deed wording (noting SMSFai trust deeds allow this)

• Subject to strict allocation rules and timing requirements

Done properly, they are legitimate and powerful.
Done poorly, they create compliance risk very quickly.

This is where having the right SMSF Partner matters more than ever.

The bigger message

High tax years feel painful - but they’re also opportunity years.

If you:

• Have variable or lumpy income

• Run your own business

• Are approaching major transactions

• Or operate through an SMSF

…then super shouldn’t be an afterthought once the tax bill arrives.

It should be part of the conversation early, with structure, strategy, and compliance front of mind.

Because paying less tax isn’t about clever tricks -
It’s about using the system as it was designed, with intent and control.