Maximising Superannuation Contributions Before EOFY

Maximising Superannuation Contributions Before EOFY

As the end of financial year (EOFY) approaches, the countdown begins for Australians to make smart decisions that can improve their retirement outcomes and potentially reduce their tax bills. In this article, we dive into one of the most effective tools available, superannuation contributions.

With strategic planning, the EOFY becomes an opportunity to boost your super, unlock tax advantages, and secure long-term financial wellbeing.

In this guide, we’ll walk through:

• The different types of super contributions
• Key contribution caps and rules for FY2024–25
• Last-minute EOFY strategies
• Tips for business owners and high-income earners
• Mistakes to avoid
• How advice from a financial planner can help you stay compliant and strategic

Why EOFY Is A Super Opportunity

The Australian super system is designed to reward long-term savers with powerful tax incentives. But these benefits don’t carry over automatically each year, you need to act within specific timeframes, and EOFY is one of the most critical deadlines.

EOFY strategies typically revolve around:

• Reducing taxable income through deductible contributions
• Maximising concessional and non-concessional caps
• Taking advantage of carry-forward and spouse contribution schemes
• Contributing before 30 June to qualify for tax benefits this financial year

Let’s break down how to do this effectively.

1 – Understanding Super Contribution Types

a) Concessional Contributions (Tax-Deductible)

• Includes employer contributions (e.g., SG at 11.5%), salary sacrifice, and personal deductible contributions.
• Taxed at 15% in your super fund.
• Cap: $30,000 for FY2024–25.
• Ideal for those looking to reduce their assessable income.

Tip: If your employer isn’t offering salary sacrifice, you can still claim a tax deduction for personal contributions—but you must lodge a “Notice of Intent” with your fund before tax time.

b) Carry-Forward Contributions

• If you haven’t used your full concessional cap in the past 5 years, you can “catch up”.
• You must have a total super balance under $500,000 on 30 June of the previous year.
• Great for people with irregular income or who paused contributions during career breaks.

c) Non-Concessional Contributions (After-Tax)

• Made from your after-tax income, and not taxed again in your fund.
• Cap: $120,000 per year, or up to $360,000 over 3 years using the bring-forward rule.
• Ideal for those looking to boost their retirement balance quickly or contribute from an inheritance or sale of assets.

d) Downsizer Contributions

• If you’re 55 or older and sell your main residence, you can contribute up to $300,000 per person to super, outside the regular caps.
• You must do this within 90 days of settlement.
• No work test or age limit applies.

2 – EOFY Contribution Checklist

Here’s what you should be checking off before 30 June:

✅ Know your contribution caps
✅ Calculate how much you’ve already contributed this year
✅ Check your total super balance (TSB) as at 30 June last year
✅ Review any carry-forward eligibility
✅ Time your contributions – they must hit your fund by 30 June
✅ Submit a Notice of Intent if claiming deductions

3 – Key EOFY Super Strategies to Consider

Strategy 1: Top Up With Personal Deductible Contributions

If you have surplus cash or a tax bill looming, consider making a personal contribution and claiming a deduction. It reduces your taxable income and grows your retirement savings at a concessional tax rate.

Strategy 2: Use Carry-Forward Caps

This is especially powerful for those earning more this year or who’ve had inconsistent incomes. By looking back over the last five years and catching up on unused caps, you can contribute a larger lump sum and save on tax.

Strategy 3: Spouse Contributions

If your partner earns less than $37,000 per year, you may be eligible for a tax offset of up to $540 by contributing to their super.

Strategy 4: Government Co-Contribution

Low-income earners (<$58,445) who make non-concessional contributions may be eligible for a $500 co-contribution from the government.

Strategy 5: Salary Sacrifice Agreements

You can set up salary sacrifice arrangements to automatically divert part of your pre-tax salary into super. If set up before EOFY, even one or two pay cycles can make a difference.

4 – Timing Matters: Don’t Miss the Cut-Off

It’s not enough to send the money before 30 June, it needs to be received and processed by your fund. Given processing times and public holidays, it’s safest to act by mid-June.

5 – Super Strategies For Business Owners

If you’re self-employed or run a company:

• You can make personal deductible contributions from business profits.
• Consider employer contributions for yourself if you operate via a company.
• If profits are strong, this can help reduce tax liabilities while building long-term wealth.

Tip: Always make sure your business has sufficient cash flow to handle the contribution without putting strain on operations.

6 – Common Mistakes To Avoid

🚫 Missing the cut-off date
🚫 Going over the cap and getting taxed at your marginal rate
🚫 Failing to submit your Notice of Intent to claim a deduction
🚫 Not checking your total super balance (TSB) – impacts eligibility for many strategies
🚫 Relying on employer contributions alone – often falls short of what you’ll need

7 – A Note On Superannuation & Tax

Superannuation is not just a retirement savings vehicle, it’s a tax structure.

• Concessional (Personal Deductible) Contributions are taxed at 15% (or 30% if you earn >$250k).
• Investment earnings in super are taxed at 15%.
• Once you enter retirement phase, investment earnings become tax-free.
• Withdrawals after age 60 (from a taxed source) are also tax-free.

For many Australians, super represents the most tax-effective way to invest for retirement.

8 – EOFY Super Contributions: Quick Reference Table

9 – Take Action Before June 30

Whether you’re an employee, business owner, or nearing retirement, EOFY is one of the most important times of year to revisit your superannuation strategy.

Small actions taken now can mean:

• A larger retirement nest egg
• Lower tax bills
• Better peace of mind

Not sure where to start?

Speak with a financial planner at Manly Financial Services and gain clarity on the best moves for your personal circumstances.

10 – Partner With A Financial Planner

EOFY can be overwhelming, and speaking with a financial planner can help you gain clarity on the best moves for your personal circumstances. A licensed financial planner can:

• Help you calculate contribution space
• Tailor strategies to your cash flow and goals
• Ensure you stay compliant and avoid penalty tax
• Guide decisions around downsizer or spouse contributions
• Integrate super into your broader retirement and investment plans

At Manly Financial Services, we specialise in working with individuals and families across different life stages, helping them make smarter decisions with confidence.

Important Disclaimer: The information provided in this article is general in nature and does not constitute financial advice. Please consult with a qualified financial advisor to discuss your individual circumstances before making any decisions.