The end of the financial year may seem far away, however early planning can boost your superannuation balance and optimise your tax position. Below are some essential tips so you can act now, enjoy tax savings, and have peace of mind as you work toward a comfortable retirement.
Concessional superannuation contributions
Concessional superannuation contributions are made before tax and include:
- Super Guarantee contributions (employer contributions)
- Salary sacrifice contributions (contributions made from before-tax income and paid into your super fund by your employer—these are also considered employer contributions)
- Member contributions (personal concessional contributions that may be deductible in your personal income tax return)
Our top tips to boost your superannuation through concessional contributions
- It’s important that you don’t exceed the annual concessional contribution cap. It’s $30,000 for the 2025 financial year.
- Add all your contributions together to ensure you don’t exceed the cap, including employer contributions, salary sacrifice, and any personal concessional contributions you plan to make.
- If you’re planning to implement a salary sacrifice strategy, do your calculations before advising your employer of the required deductions. Salary sacrifice can lower your taxable income and reduce your tax.
- Making regular payments into your superannuation fund helps you avoid scrambling at the end of the financial year. Super funds need time to receive and record contributions before year end for you to claim a deduction and reduce your tax.
- An added benefit is that these additional funds, invested in line with your super fund’s investment strategy, may help your super balance grow further over time.
- If your total super balance was less than $500,000 at the end of the previous financial year, you may be able to access unused concessional contribution amounts from previous years (carry-forward concessional contributions).
Non-concessional superannuation contributions
You can also make additional superannuation contributions when you have spare cash. Because you have already paid tax on this money, the super fund won’t tax these contributions.
Our top tips to boost your superannuation through non-concessional contributions
- Be aware of the non-concessional contribution cap. It is $120,000 for the 2025 financial year.
- Depending on your total super balance, you may be able to use the bring-forward rule to contribute up to three years’ worth of non-concessional contributions. From 1 July 2024, this allows you to contribute up to $360,000 in a single year. If you use this strategy, you generally won’t be able to make further non-concessional contributions in the next two financial years.
- Consider making a downsizer contribution. If you are 55 or older and have owned your home for more than 10 years, you may be able to contribute up to $300,000 from the proceeds of the sale of your home into your superannuation fund. A downsizer contribution is treated as a non-concessional contribution, but it does not count towards the non-concessional contribution cap. It will not affect your total superannuation balance until it is re-calculated at the end of the financial year.
Additional notes
- Keep records of your super contributions so you have them on hand when your accountant prepares your tax return.
- To claim a personal concessional tax deduction, you need to submit a Notice of intent to claim or vary a deduction for personal super contributions to your super fund, and receive the fund’s acknowledgement letter before claiming the deduction in your tax return.
What about self-managed super funds?
Additional strategies to reduce taxable income may be available to members of self-managed superannuation funds (SMSFs). Some of these strategies have been covered in our previous articles, including: What is SMSF (concessional) contribution splitting and how does it work? and Can a contribution reserve strategy reduce your tax?
How can ABA help you boost your superannuation and optimise taxes?
At ABA Advice Beyond Accounting in Birtinya, we are committed to helping business owners gain greater control of their finances, improve their tax position and grow their wealth. Our expert Sunshine Coast accountants can assess your current tax situation and advise you on the most effective tax strategy for your superannuation and your business. We also specialise in SMSF administration and can assist with maintaining accounting and member records, preparing annual financial statements, and completing fund paperwork.
What are you waiting for? Contact us today if you’d like to boost your superannuation and reduce tax.
Important note on superannuation and SMSF investment advice
ABA Advice Beyond Accounting are not financial advisers and cannot offer financial or investment advice on your superannuation fund or SMSF investments. We recommend you seek investment advice from a licensed financial adviser, and we can recommend a Sunshine Coast financial adviser if you don’t already have one.