EOFY SUPERANNUATION PLANNING
- Leonie Martin
- Jun 26, 2020
- 6 min read
Updated: May 18
As we approach the end of the 2024–25 financial year, it's crucial to review your superannuation strategy to maximise benefits and ensure compliance with the latest regulations. Here are the key updates and considerations:
Maximise Super Contributions
Concessional contributions
Ensure that you have maximised your annual concessional (tax deductible) super contributions. The annual concessional cap for 2024–25 has increased to $30,000 and includes any 11.5% compulsory employer contributions made on your behalf.
Be aware that if you earn more than $250,000 you may pay an additional 15% contributions tax (Division 293 tax) on your concessional contributions.
From 1 July 2024, there is no work test required for those aged 65 to 74 if you want to make concessional contributions. If you are over age 75, only mandated or compulsory super guarantee contributions are permitted.
If you are over age 75, only mandated or compulsory super guarantee contributions are permitted
Non-concessional contributions
If you are able to make an after-tax super contributions, the maximum annual cap is
If you are able to make after-tax super contributions, the maximum annual cap for 2024–25 is $120,000, with the bring-forward arrangement allowing up to $360,000 over three years if your total super balance is less than $1.9 million.
If your total super balance is $1.9 million or more on 1 July 2024, you are not eligible to make non-concessional contributions this financial year
Also note your super contribution will not be counted for this financial year unless the payment is received by your super fund prior to 30 June 2025. So prepare to make final contributions by Friday 26 June 2020 at the latest.
Review Your Salary Sacrifice Agreement
Review your salary sacrifice agreement to ensure that you have maximised your salary sacrifice superannuation contributions. If you do not have an agreement in place, consider establishing one with your employer for the 2024–25 financial year.
Salary sacrificing can be a tax-effective way to boost your super and reduce your taxable income.
Superannuation Guarantee Rate Increase
Effective from 1 July 2025, the Superannuation Guarantee (SG) rate will rise from 11.5% to 12% of an employee's ordinary time earnings. This increase means that employers will be required to contribute a higher percentage of their employees' wages into their superannuation funds, enhancing retirement savings over time.
For example, if an employee earns $60,000 annually, the employer's super contribution will increase from $6,900 (11.5%) to $7,200 (12%), adding an extra $300 to the employee's superannuation for the year.
It's important for both employers and employees to be aware of this change to ensure compliance and to plan accordingly for the impact on payroll and retirement savings.
Personal Concessional Contributions For Employees And Self- Employed
If you are self-employed or only receiving investment income, consider making a personal concessional super contribution to reduce your taxable income. Employees are also eligible to make personal concessional contributions in addition to contributions made by their employer, provided the total concessional contributions from all sources do not exceed $30,000.
To claim a tax deduction, you must notify your super fund in writing of your intention and receive an acknowledgment from the fund. Without this, your tax deduction is invalid.
Carry-Forward Your Concessional Contributions Cap
If your total super balance was under $500,000 on 30 June 2024, you can carry forward any unused concessional contributions from the past five years. Unused amounts from the 2018–19 financial year will expire after 30 June 2024.
This strategy allows you to catch up on contributions and potentially reduce your taxable income.
Split Your Concessional Contributions With Your Spouse
You can split up to 85% of your concessional contributions from a prior year with your spouse, as long as they are under their preservation age, or under 65 and still working. This can be a great strategy if your spouse has a low super balance or is closer to retirement age.
Contribution splitting can only be done after the end of the financial year. The amount you split counts towards your spouse’s concessional contributions cap, not yours.
Make A “Downsizer” Contribution
If you are aged 55 or older and have sold your home, you may be eligible to make a once-off contribution of up to $300,000 (or $600,000 per couple) into your super.
For those eligible, there is no need to meet a contributions work test, and the contribution is not subject to the non-concessional contributions cap, even if your total super balance exceeds $1.9 million.
As of 1 July 2024, the eligibility age for downsizer contributions remains at 55, allowing more people to boost their retirement savings after selling the family home.
Make A Spouse Super Contribution
You may be entitled to an income tax offset for superannuation contributions you make for the benefit of your spouse if they are a low-income earner earning less than $40,000 per year. You can claim the maximum tax offset of $540 when you contribute $3,000 to their super account.
If your spouse is 65 but under age 75, they are now eligible to receive contributions without needing to meet the work test, provided they haven’t triggered the bring-forward rule.
Access The Government Co-Contribution Of Up To $500
If you are under age 71, engaged in employment, and your total income is less than $58,445, the government will co-contribute 50 cents for every $1 of any non-concessional (undeducted) super contributions that you make, up to a maximum of $500.
This can be a useful strategy for low-income earners, working spouses, or even adult children working part-time.
Make A Super Contribution To Save For Your First Home
Under the First Home Super Saver Scheme (FHSSS), you can make voluntary contributions to your super fund and later withdraw up to $50,000 (up from $30,000) to help buy or build your first home. This includes both concessional and non-concessional contributions, along with deemed earnings.
Concessional contributions and their earnings are taxed at your marginal tax rate, less a 30% tax offset, while non-concessional contributions can be withdrawn tax-free.
This can be a smart way to save faster for your first home while enjoying the tax benefits of superannuation.
Consider Starting A Pension From Superannuation
If you are over age 55 and have met your preservation age requirements, you may consider starting a Transition to Retirement Income Stream (TRIS). This allows you to draw up to 10% of your super balance each year while still working.
If you are over 65 or have met a condition of release, you can commence a retirement phase pension, which is tax-free up to the transfer balance cap of $1.9 million for 2024–25.
Draw Your Minimum Pension Before Year End
If you are over age 55, you may consider starting a Transition to Retirement Income Stream (TRIS). This allows you to draw up to 10% of your super balance each year while still working.
If you are over 65 or have met a condition of release, you can commence a retirement phase pension, which is tax-free up to the transfer balance cap of $1.9 million for 2024–25.
EOFY Superannuation Planning Checklist for 2024–25
✅ Maximise Concessional Contributions ($30,000 cap)
✅ Make Non-Concessional Contributions if under $1.9M total balance
✅ Carry Forward Unused Concessional Contributions if eligible
✅ Review Salary Sacrifice Agreements
✅ Split Concessional Contributions with Your Spouse
✅ Make Downsizer Contributions if aged 55 or older
✅ Contribute for Your Spouse if they earn under $40,000
✅ Access the Government Co-Contribution if earning under $58,445
✅ Check Your First Home Super Saver Balance if saving for a home
✅ Draw Minimum Pension Requirements before 30 June
This checklist can help you stay organised and fully leverage your superannuation opportunities before EOFY. If you need tailored advice, the team at HelloLedger is ready to assist.
Ready to Get Started on Your EOFY Super Actions
Are you ready to make the most of your end-of-financial-year superannuation opportunities? Taking action now can help you reduce your tax burden and maximise your retirement savings.
Contact HelloLedger if you have any questions or need tailored advice related to EOFY super planning and SMSFs.
Important: This post contains information that is general in nature and is not advice. It does not take into account the objective, financial situation or needs of any particular person. We recommend you seek formal advice and consider your financial situation and need before acting on anything contained in this post.
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