We are fast approaching the end of the 2024/25 financial year.
Below are some important items to consider in the lead up to 30 June 2025.
Superannuation
Now is a good time to review your superannuation contributions within the current financial year.
Contributing funds to superannuation may be suitable solution for you to help build your retirement savings and achieve tax-effectiveness.
You may or may not have made contributions to superannuation already within the current financial year. If you have, you may have space remaining within your cap to contribute more. If you haven’t, you may want to contribute prior to 30 June.
The below contributions may be available to you, and we recommend speaking with your Financial Adviser to confirm:
- Non-Concessional Contributions
Non-concessional contributions are normally made using proceeds held within personal savings and are not tax-deductible. The annual non-concessional (NCC) cap is $120,000 and is only available if your total superannuation balance was less than $1.9 million on 30 June 24. In some cases, you may be able to contribute more than the annual cap limit into superannuation, however this depends on meeting a range of specific circumstances.
- Concessional Contributions
A concessional contribution can be made using funds held within savings and the whole amount or part of the total contribution can be claimed as a tax-deduction to help reduce overall tax payable within the financial year.
The annual cap within the current financial year is $30,000 and this cap includes contributions made by your Employer (Superannuation Guarantee – 11.5%), Salary Sacrifice and Personal Deductible Contributions.
- Spouse Contribution
If your spouse earns less than $37,000, you can make a $3,000 non-concessional contribution for them into their super fund and receive a maximum personal $540 tax offset yourself. The offset available to you will reduce as your spouse’s income increases between $37,000 and $40,000.
- Government Co-Contribution
If you earn less than $45,400 you could make a non-concessional contribution of $1,000 and receive a maximum co-contribution of $500. A reduced co-contribution can be received for income up to $60,400.
Superannuation Contribution cut-offs
Don’t wait until the last minute to contribute to your superannuation account. The proceeds must be received within your fund before 30 June to be considered a contribution within the current financial year.
We recommend contributing well before the 30 June cut off. As payment processing times vary between different banks, please check with your specific bank and consider this information when making a transfer of funds to your super account.
Account-Based Pensions
If you have an account based pension within a retail or industry fund, your pension payments will be managed accordingly to ensure that you have drawn the minimum pension payment required for the financial year. This process ensures that you draw the required amount of income and your account remains complying.
If your superannuation is in pension phase and held within a Self-Managed Super Fund (SMSF), this process is not so simple and can be a manual process. For this reason, it is important that you speak with your Administrator, Accountant or Adviser to ensure that you draw your minimum pension payment for the financial year prior to June 30.
