Maximising Super before 30 June

More than half of us set a new financial goal at the beginning of 2025, according to ASIC’s Moneysmart website. While most financial goals include saving money and paying down debts, the months leading up to 30 June provide an opportunity to review your super balance to look at ways to boost your retirement savings.

What you need to consider first

If you have more than one super account, look at consolidating them to one account. Consolidating your super could save you paying multiple fees and it will be easier to keep track of.

When transferring super into one account, do your homework and shop around, your current fund may not be your best option.ⁱ

How to boost your retirement savings

Making additional contributions on top of the super guarantee paid by your employer could make a big difference to your retirement balance thanks to the magic of compounding interest.

There are a few ways to boost your super before 30 June

Concessional contributions (before tax)

These contributions can be made from either your pre-tax salary via a salary-sacrifice arrangement through your employer or using after-tax money and depositing funds directly into your super account.

Apart from the increase to your super balance, you may pay less tax (depending on your current marginal rate).ⁱⁱ

Check to see what your current year-to-date contributions are so any additional contributions you may make don’t exceed the concessional (before-tax) contributions cap, which is $30,000 from 1 July 2024.ⁱⁱⁱ

Non-concessional contributions (after tax)

This type of contribution is also known as a personal contribution. it is important not to exceed the cap on contributions, which is set at $120,000 from 1 July 2024.^iv

If you exceed the concessional contributions cap (before tax) of $30,000 per annum, any additional contributions made are taxed at your marginal tax rate less a 15 per cent tax offset to account for the contributions tax already paid by your super fund.

The non-concessional contributions cap (after tax) is set at $120,000 from 1 July 2024.^v

Exceeding the non-concessional contributions cap will see a tax of 47 per cent levied on the excess contributions.

Carry forward (catch-up) concessional contributions

If you’ve had a break from work or haven’t reached the maximum contributions cap for the past five years, this type of super contribution could help boost your balance – especially if you’ve received a lump sum of money like a work bonus.

These contributions are unused concessional contributions from the previous five financial years and only available to those whose super accounts are less than $500,000.

There are strict rules around this type of contribution, and they are complex so it’s important to get advice before making a catch-up contribution.

Meanwhile, the fate of a proposed new tax, known as Division 296, applying to super balances over $3 million is still unknown. It has yet to be debated and go to a vote in the Senate.

Downsizer contributions

If you are over 55 years, have owned your home for 10 years and looking to sell, you may be able to make a non-concessional super contribution of as much as $300,000 per person – $600,000 if you are a couple. You must make the contribution to you super within 90 days of receiving the proceeds of the sale of your home.

Spouse contributions

There are two ways you can make spouse super contributions, you could:

• split contributions you have already made to your own super, by rolling them over to your spouse’s super – known as a contributions-splitting super benefit, or
• contribute directly to your spouse’s super, treated as their non-concessional contribution, which may entitle you to a tax offset of $540 per year if they earn less than $40,000 per annum

Again, there are a few restrictions and eligibility requirements for this type of contribution.

Get in touch for more information about your options and for help with a super strategy that could help you achieve a rewarding retirement.

Contact Carrick Aland’s Wealth Planning team on 1300 466 998 or visit carrickaland.com.au/wealth-planning/. 

WEBSITE DISCLAIMER

This website is published by Carrick Aland Wealth Planning Pty Ltd. Carrick Aland Wealth Planning Pty Ltd (CARN 263248) are authorised representatives of Millennium3 Financial Services Pty Ltd (ABN 61 094 529 987, AFSL 244252). The information contained in this website and any of the resources available through it including eBooks, fact sheets, and seminars (‘Content’) has been prepared for general information purposes only and is not (and cannot be construed or relied upon as) personal advice. No investment objectives, financial circumstances, or needs of any individual have been taken into consideration in the preparation of the Content. Financial products entail risk of loss, may rise and fall, and are impacted by a range of market and economic factors, and you should always obtain professional advice to ensure trading or investing in such products is suitable for your circumstances.

Under no circumstances will any of Carrick Aland Wealth Planning Pty Ltd, Millennium3 Financial Services Pty Ltd, its officers, representatives, associates, or agents be liable for any loss or damage, whether direct, incidental, or consequential, caused by reliance on or use of the Content. This Content is restricted to Australian residents and is for the intended recipient only. From time to time, Carrick Aland Wealth Planning Pty Ltd representatives or associates may hold interests in or transact in companies or products mentioned herein and may receive fees or other benefits, in connection with the making of any recommendation or facilitating a transaction in such companies or products.

i Transferring or consolidating your super | Australian Taxation Office

ii Salary sacrificing super | Australian Taxation Office

iii Concessional contributions cap | Australian Taxation Office

iv, v Non-concessional contributions cap | Australian Taxation Office