From www.heffron.com.au: Changes to the treatment of reserve allocations in SMSFs effective from December 7, 2024, allow larger amounts to be allocated without triggering contribution caps.

The previous 5% rule has been altered, shifting the limits from concessional to non-concessional contributions, presenting new opportunities for fund members.

However, individuals need to consider how reallocation affects earlier allocations to avoid exceeding caps on contributions.