The end of the financial year may seem far away; however, early planning can boost your superannuation balance and reduce your tax. We bring you our essential tips so that you can act now, enjoy tax savings and have peace of mind for a comfortable retirement.
Concessional Superannuation Contributions
Concessional superannuation contributions are made before tax and are comprised of:
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 are 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. Include employer contributions, salary sacrifice and any other personal concessional contributions you plan to make.
If you are planning on implementing a Salary Sacrifice strategy, use these calculations before you advise your employer of the required salary deductions. Salary sacrifice lowers your taxable income and your tax.
Making regular payments into your superannuation fund ensures you aren’t scrambling at the end of the financial year. Super funds need time to receive and record contributions before the end of the financial year for you to reduce your tax.
The added benefit is that these additional funds invested in line with your super fund’s investment strategy could help your super balance grow even more.
If your total super balance is less than $500,000 at the end of the previous financial year, you’re able to access unused concessional contributions amounts from previous years.
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 can use the bring-forward rule to contribute up to three years’ worth of non-concessional contributions. From 01/07/2024, this allows you to contribute up to $360,000 in a single year. If you use this strategy, you are not able to make 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 a non-concessional contribution, but it doesn’t count towards the 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 that you have them on hand when your accountant is preparing your tax returns.
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 before the end of the financial year. You also need your super fund’s letter of acknowledgement to claim these amounts as a tax deduction.
What about self managed super funds?
Additional strategies to reduce taxable income are available to members of self managed superannuation funds (SMSF). A number of these have been included in our previous news articles. You can read more about "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 reduce taxes?
At ABA Advice Beyond Accounting, we are committed to helping business owners gain greater control of their finances, improve their tax position and grow their wealth. Our expert 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 the administration of SMSFs and can assist you with maintaining accounting and members records along with preparing annual financial statements and fund paperwork.
What are you waiting for? Contact us today if you would like to boost your superannuation and reduce taxes!
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. ABA always recommend you seek investment advice from a licensed Financial Adviser and can recommend a financial adviser if you don’t already have one.
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