From smsmagazine.com.au: SMSF members facing a Division 293 tax bill are being advised to consider a contribution reserving strategy to offset the tax impact.

This strategy allows SMSFs to distribute large income sums across two financial years, which can be particularly beneficial when a member experiences a significant capital gain.

Superannuation expert Matt Manning illustrates this with an example where a member can optimize their tax benefits by strategically directing contributions to remain below the Division 293 threshold.