Maximise your super contributions before June 30th

With June 30th on our doorstep, now is the time to get moving if you wish to boost your superannuation before the EOFY. Making additional contributions to your superannuation is one of the more effective strategies to improve your longer-term financial position while potentially reducing your tax bill.

Concessional contributions are generally made from pre-tax income and are taxed at 15% within your super fund. This makes them a highly tax-effective way to enhance your retirement savings. For the 2025-26 financial year, the concessional contribution cap is $30,000. This cap includes:

• Employer Superannuation Guarantee (SG) contribution
• Salary sacrifice contributions
• Personal contributions claimed as a tax deduction

Employer contributions may not fully utilise this cap. This creates an opportunity to make additional deductible contributions before the end of the financial year.

Importantly, if your total super balance was less than $500,000 on 30 June 2025, you may also be eligible to use unused concessional contribution cap amounts from the previous five financial years through the carry-forward contribution rules. This provides an opportunity to make larger tax-deductible contributions and potentially reduce taxable income.

Non-concessional contributions are made from after-tax money and do not attract a tax deduction. However, they can still play a role in building retirement savings. For 2025-26, the non-concessional contribution cap is $120,000 per year. Depending on your age and total super balance, you may also be able to utilise the bring-forward provisions to contribute up to three years’ worth of caps in a single financial year.

These contributions can be particularly useful for individuals who have received an inheritance, sold an investment property, or accumulated significant savings outside super.

Lower and middle-income earners may be eligible for the Australian Government’s super co-contribution scheme. If you make a personal after-tax contribution to super and meet the eligibility requirements, the government may contribute up to $500 to your super account. Eligibility depends on factors including your income, employment status, and the amount contributed.

While the maximum benefit may seem modest, it can boost retirement savings over time. If it is available to you, you should consider it.

For couples, a spouse contribution strategy may also be worth considering. If you contribute to your spouse’s super fund and they earn below certain income thresholds, you may be eligible for a tax offset of up to $540. This strategy can help balance retirement savings between partners while potentially providing additional tax benefits.

A common mistake I see is leaving super contributions until the final days of June.

A contribution generally counts toward the current financial year when it is received by the super fund, not when you initiate the transfer. Processing times can vary significantly between financial institutions, super funds and payment methods. Electronic transfers, BPAY payments and employer payroll processing can all take several business days to clear and be allocated to your account. During periods of high transaction volumes near year-end, delays are not uncommon.

To minimise the risk of missing the deadline, we recommend making any planned super contributions well before 30 June. Ideally, contributions should be made at least one to two weeks before the end of the financial year, allowing sufficient time for processing and allocation.

Missing the deadline could mean losing the opportunity to claim a tax deduction this financial year, missing out on government incentives, or delaying your retirement savings strategy by 12 months.

Contribution caps, eligibility requirements and individual circumstances vary significantly. Before making additional contributions, it’s important to review your existing super balance, employer contributions, and available carry-forward caps. Careful planning can help ensure you maximise available opportunities while avoiding excess contribution penalties.

With 30 June 2026 approaching, now is the ideal time to review your position and take action. The earlier you start the process, the greater the likelihood your contribution will be successfully processed and counted in the current financial year. If you’re considering making additional super contributions before year-end, speak to us as soon as possible so we can help ensure your strategy aligns with your retirement goals and tax planning objectives.

For individuals considering commencing an account-based pension, careful timing around 30 June can significantly impact your transfer balance cap position and future retirement income planning. Establishing a pension before year-end may provide advantages, depending on your circumstances, including the potential to commence earning tax-free investment income sooner in the pension phase. However, eligibility requirements, documentation and processing timeframes need to be carefully managed to ensure the pension is validly established.

SMSF trustees should also be preparing for the upcoming changes associated with Division 296. While the proposed legislation remains subject to parliamentary approval, trustees should consider obtaining up-to-date market valuations for fund assets and ensuring appropriate records are maintained. Accurate valuations will be particularly important in establishing asset cost bases and supporting any future calculations should the Division 296 tax proceed. Starting this process early can help avoid valuation bottlenecks and ensure your fund’s records are well prepared for any legislative changes.