More than half of us set a new financial goal at the beginning of 2025, according to ASIC’s MoneySmart website. While most financial goals focus on saving money and paying down debt, the months leading up to 30 June present an opportunity to review your super balance and explore ways to boost your retirement savings.
What you need to consider
If you have more than one super account, consider consolidating them into a single account. Doing so could save you from paying multiple fees and make it easier to keep track of your super.
When transferring your super into one account, do your research and compare options—your current fund may not be the best choice. i
Boosting your retirement savings
Making additional contributions on top of the super guarantee paid by your employer can significantly boost your retirement savings, thanks to the power of compounding interest.
Ways to boost your super before 30 June
Concessional Contributions (before tax)
These contributions can be made from your pre-tax salary via a salary-sacrifice arrangement through your employer or by using after-tax money and depositing funds directly into your super account.
In addition to increasing your super balance, concessional contributions may also reduce your tax liability, depending on your marginal tax rate. ii
Check your year-to-date contributions to ensure any additional contributions do not exceed the concessional (before-tax) contributions cap, which is $30,000 from 1 July 2024. iii
Non-Concessional Contributions (after tax)
Also known as personal contributions, these are made from after-tax income. It is important to stay within the non-concessional contributions cap, which is set at $120,000 from 1 July 2024. iv
If you exceed the concessional contributions cap of $30,000 per annum, any additional contributions will be taxed at your marginal tax rate, with a 15 per cent offset to account for the contributions tax already paid by your super fund.
Exceeding the non-concessional contributions cap will result in a tax rate of 47 per cent on the excess contributions. v
Carry forward (catch-up) concessional contributions
If you have had a break from work or have not reached the maximum concessional contributions cap in the past five years, you may be able to use catch-up contributions to boost your super—especially if you have received a lump sum, such as a work bonus.
These contributions utilise unused concessional caps from the previous five financial years and are available only to those with super balances below $500,000.
Strict rules apply to this type of contribution, making it essential to seek advice from one of our expert financial advisers before making a catch-up contribution.
Meanwhile, the fate of the proposed Division 296 tax, which would apply to super balances over $3 million, remains uncertain. It has yet to be debated and voted on in the Senate.
Downsizer Contributions
If you are over 55 years old, have owned your home for at least 10 years, and are looking to sell, you may be eligible to make a non-concessional super contribution of up to $300,000 per person—or $600,000 as a couple.
The contribution must be made to your super within 90 days of receiving the proceeds from the sale of your home.
Spouse Contributions
There are two ways you can make spouse super contributions:
- Contribution splitting: You can roll over contributions you have already made to your own super into your spouse’s super. This is known as a contributions-splitting super benefit.
- Direct contribution: You can contribute directly to your spouse’s super, which will be treated as their non-concessional contribution. If your spouse earns less than $40,000 per annum, you may be eligible for a tax offset of up to $540 per year.
As with all super contributions, there are restrictions and eligibility requirements to consider.
Maximising your super contributions before 30 June can significantly boost your retirement savings and improve your financial future. If you or a loved one needs assistance, we’re here to help— contact your adviser or our team to start planning for a secure and rewarding retirement.