With June 30 fast approaching, now is the time to get EOFY ready by checking in on your super and making sure you’re taking advantage of every opportunity available. We know the end of financial year can feel overwhelming, so we’ve simplified the key steps to consider—helping you head into the new financial year organised, confident, and fully EOFY ready.
Make sure your contributions count towards the correct financial year
If you’re planning to make a super contribution this financial year, whether it’s personal, salary sacrifice, or after-tax, make sure it’s received and processed by your fund before June 30. Remember, it’s not the date you transfer the money, it’s the date your super fund receives and credits it that counts. Many funds set their own cut-off dates (some as early as mid-June), so don’t leave it to the last minute.
Check Your Contribution Caps
Every year, there are limits on how much you can contribute to your super. For 2024–25:
- Concessional (before-tax) cap: $30,000
- Non-concessional (after-tax) cap: $120,000
Note: If your total super balance was $1.9 million or more on 30 June 2024, your non-concessional cap is reduced to zero.
It’s also worth double-checking that any payments from last financial year didn’t slip into this one and confirming with your payroll team when salary sacrifice and SG payments will hit your fund especially since SG payments for April to June don’t have to be paid until July 28.
Top Up with a Tax-Deductible Contribution
If you have room in your concessional cap, you might consider making a personal contribution and claiming a tax deduction. Even though the contribution is taxed at 15% going into super, this is often lower than your marginal tax rate, meaning you could enjoy a decent tax saving while boosting your retirement balance.
Think About an After-Tax Contribution
If you have extra savings, adding to your super from your after-tax income can be a smart way to build your retirement nest egg. These contributions aren’t taxed on the way in and your investment earnings inside super are generally taxed at just 15%, usually less than outside of super.
If your income is under $60,400 (2024–25), you might even be eligible for a government co-contribution, which is a handy bonus for lower-income earners or a great incentive for your adult kids who are just starting work.
Make the Most of Contribution Rules
There are a couple of strategies that could help you put more into super than the standard caps:
- Carry-forward concessional contributions: If your super balance is under $500,000 and you’ve had unused concessional cap amounts in the last few years, you may be able to use them before they expire. This is your last chance to use amounts from 2019–20.
- Bring-forward rule: This allows you to contribute up to three years’ worth of non-concessional contributions in a single year (up to $360,000), depending on your total super balance.
We can help you check if you’re eligible and whether these strategies make sense for your goals.
Review Your Salary-Sacrifice Arrangement
Now’s a good time to set up or review your salary-sacrifice contributions for the new financial year. This is when you redirect some of your pre-tax salary straight into your super. It’s tax-effective and a great way to grow your balance steadily.
Just make sure the arrangement is set up before the income is earned, so ideally, it’s in place before the start of the new financial year.
Boost Your Spouse’s Super (and Save on Tax)
If your partner earns less than $40,000, contributing up to $3,000 into their super account could give you a tax offset of up to $540. It’s a great way to build up their super while giving your own tax a break.
You might also consider splitting your contributions from last financial year to your spouse, this can help equalise balances, access money earlier if they’re older, or improve Age Pension eligibility in retirement.
If You’re Drawing a Super Pension – Check Your Minimum Payments
If you’re already retired (or transitioning to retirement) and drawing a pension from your super, it’s important to make sure you’ve received the required minimum payments for this financial year.
Be aware: after July 1, your new minimum for the year ahead may change depending on your age.
Employers: Prepare for a Higher Super Guarantee Rate
From 1 July 2025, the Super Guarantee rate for employees will rise to 12%. For 2024–25, it remains at 11.5%. Most payroll systems will update this automatically, but it’s worth checking and updating your budgeting accordingly.
Final Thought
EOFY is a great chance to pause, plan, and make the most of what superannuation has to offer. If you’d like some help working through these strategies to get EOFY ready or figuring out what’s best for you, reach out to us at PAC Financial. We’re here to help you make the most of your money, now and into the future.
