A Superannuation Reserve is an amount of money or asset that has not been allocated to a member of the fund but may be in the future. 

Therefore the members have no entitlement to it - i.e., the reserve does not form a part of any members' balance. A superannuation fund may maintain reserves unless it is prohibited by its trust deed. Refer Superannuation Industry Supervision Act 1993 Section 15.

Reserves are commonly created for the purpose of:

1.    Catering for fluctuations on investment returns;

2.    Operation risk;

3.    Self Insurance;

4.    Holding member contributions;

5.    Making an anti - detriment payment and obtaining a tax deduction within the SMSF