“This may occur when a member's business or some other entity pays fees or charges that should have been paid by the fund,” he said.

For a retiree, deeming is a calculation used by Centrelink to estimate what income they earn from their assessable financial assets, which includes interest on bank accounts, shares, managed funds, and super, and is used to work out eligibility for the Age Pension.

Following the 2024–25 budget on 14 May, deeming rates have been frozen for a further 12 months at 0.25 per cent for the lower rate and 2.25 per cent for the higher rate.

“Deemed contributions generally occur when increases in fund value have not been caused by investments or insurance,” Busoli said.

“Most commonly this occurs when an expense is paid on behalf of the fund without reimbursement though it can also occur when an asset in the fund is improved by the member without appropriate payment. This may invoke NALI provisions so needs to be considered carefully.”

Busoli added that where the action is attributable directly to a member or their spouse it will be a non-concessional contribution by default.

“The member can elect for it to be a concessional contribution, subject to eligibility, using the standard notice of intent to claim a tax deduction, if they wish,” he said.