With 30 June 2025 fast approaching, now is the ideal time to review your financial position and ensure all EOFY requirements are met, and take advantage of any available opportunities before the financial year ends.
Here are some important areas to consider:
Minimum Pension Payments
If you are receiving an income stream from an SMSF, make sure minimum payments are made before 30 June.
| Age | Minimum Drawdown Rate |
|---|---|
| Under 65 | 4% |
| 65 – 74 | 5% |
| 75 – 79 | 6% |
| 80 – 84 | 7% |
| 85 – 89 | 9% |
| 90 – 94 | 11% |
| 95 and over | 14% |
Superannuation Strategies
Personal Contributions for Tax Deductions
Making a personal deductible super contribution before 30 June could reduce your taxable income. These contributions are taxed at 15% inside super – often lower than your marginal tax rate.
2024/25 annual concessional cap is $30,000 (includes employer, salary sacrifice, and personal deductible contributions).
Finalise 2023/24 Deductions
If you made personal contributions in 2023/24 and haven’t submitted a Notice of Intent to Claim, now is your last chance.
Catch-Up Concessional Contributions
If your total super balance was under $500,000 on 30 June 2024, you may be able to use unused concessional caps from the past 5 years (2019/20 unused cap expires this year).
Contribution Splitting
Consider splitting up to 85% of your 2023/24 concessional contributions with your spouse to manage balances and optimise long-term strategy.
Plan Ahead for 2025/26 Salary Sacrifice
Now is a great time to review or start salary sacrifice arrangements for the new financial year, especially with the Super Guarantee rising to 12% from 1 July.
Non-Concessional Contributions (NCCs)
If you are looking to grow your super without claiming a tax deduction, you may be eligible to contribute up to $360,000 using the bring-forward rule.
| TSB on 30 June 2024 | NCC Cap 2024/25 | TSB on 30 June 2025 | NCC Cap 2025/26 |
|---|---|---|---|
| Less than $1.66m | $360,000 | Less than $1.76m | $360,000 |
| $1.66m – <$1.78m | $240,000 | $1.76m – <$1.88m | $240,000 |
| $1.78m – <$1.9m | $120,000 | $1.88m – <$2m | $120,000 |
| $1.9m or more | Ineligible | $2m or more | Ineligible |
Government Incentives
Government Co-Contribution
Make an NCC if your income is under $60,400 to receive up to $500 from the government.
Spouse Contributions
Contribute to your spouse’s super and receive a tax offset of up to $540 if their income is under $40,000.
Transfer Balance Cap Planning
From 1 July 2025, the general Transfer Balance Cap increases to $2 million. This could present opportunities if you:
- Haven’t started a retirement phase income stream.
- Have unused amounts.
- Are meeting a full condition of release before EOFY.
Other EOFY Considerations
Centrelink Gifting
Use the annual gifting limit of $10,000 (up to $30,000 over five years) to manage assets.
Retirement or Redundancy Timing
Deferring to 2025/26 may reduce tax due to lower income and indexed thresholds.
We are here to help
EOFY is a good time to reflect on any opportunites not yet taken advantage of and consider if right for you to implement prior to 30 June.
Please reach out to our team if you have any questions.
Disclaimer:
The information above is general in nature and does not take into account your personal objectives, financial situation or needs. For personalised advice, please contact our office to speak to one of our licensed financial advisers.
