Get Ready For Tax Time...Again
As we approach 30 June for another loop around the sun, it’s time to consider a few smart moves now, which we know can make a big difference to enhancing your retirement plans and potentially saving you big at tax time.
Make Contributions Early
Super contributions must be received by your fund by 30 June. To avoid delays, aim to make payments by Monday, 24 June or earlier.
Review Your Concessional Contributions
The concessional contributions cap for 2025 is $30,000, and making additional contributions before EOFY may be able to reduce your taxable income as contributions are taxed at 15% (unless Division 293 applies), which may be lower than your personal income tax bracket.
Maximise Carry-Forward Contributions
Consider taking advantage of any unused concessional contribution caps from previous years to boost your super and potentially reduce your taxable income. If your total super balance was under $500,000 on 30 June 2024, you may be eligible to use unused concessional cap amounts from the past five years.
Lodge Your Notice of Intent (NOITC)
If you have made additional contributions throughout the year (exclusing Salary Sacrifice Arrangements), and plan to claim a tax deduction for the contributions you must submit a valid ‘Notice of Intent to Claim or Vary a Deduction’ and receive acknowledgment from your fund before lodging your tax return, accessing your super, or by 30 June next FY.
Consider Non-Concessional Contributions
Another opportunity to enhance your retirement plans is the consideration for additional non-concessional contributions. The general non-concessional contribution cap for 2025 is $120,000.
Unlike concessional contributions, these contributions won’t offer you an immediate tax deduction, but they don’t get taxed upon entering into super. Further, once the funds are in super the earnings are no longer taxed in your own name but are instead taxed within the superannuation environment. The tax rate of up to 15% inside superannuation may be lower than your personal income tax bracket and could offer big savings over the years to come.
Check Eligibility for Co-Contributions
If you’re a low- or middle-income earner, government co-contributions can help grow your super. Check the thresholds and eligibility criteria.
Look Into Spouse Contributions
Splitting contributions with your spouse can be a smart strategy, especially if one of you earns significantly more or is closer to retirement.
Review Estate Planning
Check that your Binding Death Benefit Nominations (BDBNs) are valid, up to date, and aligned with your trust deed and personal wishes.
Review Insurance Cover
Check your insurance policies inside and outside super. If your superannuation-owned policies are funded by a contribution, be sure to consider whether you want to provide them with a Notice of Intent to Claim.
If you have an Income Protection policy in your own name, remember that a portion of this premium may be tax deductible to you. The insurance company will provide you with the required information in due course.
Collaborate With Your Professional Team
Work closely with your accountant and solicitor to ensure your superannuation strategy is compliant, tax-effective, and aligned with your broader financial goals.
Speak With Evolution Financial Planning
Our team specialises in tailored financial advice, wealth management, and tax planning. If you’d like help navigating your EOFY super strategy, we’re here to support you every step of the way.
