End of financial year superannuation strategies

The pre-election Federal Budget was announced on Tuesday 25 March 2025, with a focus on Medicare and healthcare, minor tax cuts and cost-of-living through energy bill relief.

While there were no major changes to Superannuation in this budget, there are some strategies you may wish to think about in the lead-up to the end of the financial year:

• From 1 July 2025, both the Total Superannuation Balance (the amount at which you are no longer eligible to contribute after-tax or non-concessional contributions) and the Transfer Balance Cap (the amount of money you can transfer into a tax-free retirement income stream) will increase from $1.9m to $2m.
• The 11.5% Superannuation guarantee - a percentage of your wage that your employer is required to pay into your Superannuation account - increases to 12.0% from 1 July 2025.  
• Ensure your minimum pension payments have been made. If you are accessing an Account Based Pension from your SMSF, make your that the minimum amount required to be paid from your fund is paid in cash from the fund’s bank account by 30 June in order to qualify for tax exemptions.
• If your total superannuation balance was less than $500,000 as at 1 July 2024, consider a “catch up” concessional contribution.  If you have not maximised your concessional contributions over the last five years you can make tax deductible contributions for the difference without impacting the $30,000 cap. Consider this strategy if your income tax rate is at or more than 32.5% or you have realised a large capital gain during the year.
• Receive a government tax offset up to $540 by making an after-tax (non-concessional contribution) to your spouse’s superannuation. To receive the maximum offset your spouse’s income must be less than $37,000 or less in this financial year.
• If you are 55 or older, and are downsizing or have downsized, you may be eligible to put forward a non-concessional downsizer contribution of up to $300,000 (single) or $600,000 (couple) from the sale of your home into your Superannuation fund before the end of FY24/25.
• If you plan to split Superannuation between spouses for the 2023/24 financial year, make sure to apply by 30 June 2025. For the 2024/25 financial year, applications can be made starting 1 July 2025.

Concessional and non-concessional contributions won’t be indexed for FY25/26, and will remain capped at: 

• $30,000 for concessional contributions into your Superannuation.
• $120,000 for non-concessional contributions into your Superannuation. 

There may be new or amended budget proposals if a change of government occurs following the 2025 federal election held on Saturday 3 May 2025.

 

This information is general in nature and is provided by Partners Wealth Group. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.