With the end of the financial year (EOFY) fast approaching, it’s time to consider your superannuation strategies. Whether you’re a high-income earner, an investor, a young professional, or managing a family budget, smart EOFY super contributions can help maximise your tax benefits and boost your retirement savings. Here’s a breakdown of what you can still do before 30 June 2025 to get the most out of your super.
What Are EOFY Super Contributions?
EOFY super contributions refer to additional payments you or others (like your employer) can make to your superannuation account before the end of the financial year. These contributions not only help grow your nest egg but can also offer significant financial advantages, such as tax deductions and government co-contributions.
Why Act Before 30 June?
Contributions received by your super fund on or before 30 June 2025 are eligible to count towards the current financial year’s caps and deductions. Missing this window means losing out on certain tax benefits and waiting another year to maximise your contributions.
Super Contribution Strategies to Consider
Different strategies suit different lifestyles and financial goals. Below are some smart moves to make before EOFY.
- Concessional Contributions
Concessional contributions are contributions made into your super account before tax. These include employer contributions (like your regular compulsory 11.5%), salary sacrifice amounts, or personal contributions you claim as a deduction.
- Contribution Cap: The concessional contributions cap is $30,000 for the 202-2025 financial year. If you haven’t reached this limit, consider making extra contributions to reduce your taxable income.
- Carry-Forward Contributions: If you have unused concessional contribution cap amounts from previous years, you may be able to carry them forward. This is a great option for high-income earners or investors who’ve had fluctuating incomes over the years. Your super balance must have been below $500,000 at 30 June from the year prior to be eligible for this.
- Non-Concessional Contributions
If you’ve already maxed out your concessional contributions, you can add more to your super using after-tax dollars. Non-concessional contributions have a different cap and provide increased flexibility.
- Contribution Cap: The cap is $120,000 per year, or up to $360,000 using the “bring forward” rule if you’re eligible.
- Who It’s For: This option is great for families who want to gift super contributions, young professionals with savings to invest, or those looking to boost their retirement fund quickly.
- Government Co-Contributions
Eligible low- and middle-income earners can take advantage of government co-contributions when they make personal contributions.
- How It Works: If you earn less than $60,400 a year and make an after-tax contribution to your super, the government could add up to $500 to your account.
- Why It’s Useful: This is a great way for young professionals or families earning under the threshold to grow their super faster.
- Spouse Contributions
If your partner’s income is below $37,000, consider contributing to their super account. Not only will this help their future but also provides you with a tax offset.
- Tax Benefits: By contributing at least $3,000, you can claim a tax offset of up to $540.
- Maximise Tax Deductions
Contributing to your super can lower your tax bill. Claiming a tax deduction for personal super contributions may help high-income earners or investors further reduce their taxable income.
- Steps to Claim:
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- Make a personal contribution before 30 June.
- Notify your super fund of your intent to claim a deduction by completing the necessary form.
- Ensure your fund acknowledges your notice before you file your tax return.
- Review Insurance in Your Super
EOFY is also an excellent time to review your superannuation insurance cover. Many funds automatically include life, disability, and income protection insurance. Ensure your coverage aligns with your current needs, especially if your life circumstances have recently changed.
- Ensure Your Details Are Up to Date
To take full advantage of EOFY contributions, confirm your super fund has your current details. This step is especially crucial if you contribute or plan to roll over funds from another fund.
Key Deadlines to Remember
- 30 June: All superannuation contributions must be processed before this date to count for this financial year. Check your fund’s cut-off times, as processing delays can vary.
Plan Today for a Better Retirement Tomorrow
EOFY presents a valuable opportunity to maximise your super contributions and enjoy tax benefits. By employing these EOFY super strategies tailored to your situation, you can improve your financial future and retirement savings.
If you would like to improve your current investment strategies or are looking to start your investment journey, click here to organise a complimentary 20-minute phone call with an EPG Wealth adviser.