As we step into the 2025–26 financial year, it’s time to start thinking ahead about your superannuation contributions. Whether you’re a salaried employee, business owner, or nearing retirement, understanding what you can do now can make a real difference to your long-term wealth.
There are a few important changes starting from 1 July 2025—and by being proactive, you can ensure you’re making the most of your entitlements while also minimising tax.
Super Guarantee Increases to 12%
From 1 July 2025, the Super Guarantee (SG)—the compulsory super paid by employers—will increase to 12% of your ordinary earnings. This means more money into your super each year, helping your retirement savings grow faster.
If you’re an employer, now’s the time to budget for the increased SG contribution and ensure your payroll systems are ready.
$30,000 Concessional Cap + Carry Forward Opportunities
The concessional (pre-tax) contribution cap for 2025–26 remains at $30,000. However, if your total super balance (TSB) is under $500,000, you might be able to “carry forward” unused cap amounts from the last five years.
Important reminder:
Unused cap amounts from the 2019–20 financial year will expire on 30 June 2025—so if you qualify, this could be your last chance to top up and boost your deductions.
In total, with the right conditions, you could contribute up to $167,500 in concessional contributions, including this year’s cap and carry-forward amounts.
To claim a tax deduction, you must submit a valid Notice of Intent to your super fund and receive an acknowledgment before lodging your tax return or withdrawing funds.
Non-Concessional Contributions: Know Your TSB
Non-concessional (after-tax) contributions are another way to grow your super—but they come with strict limits based on your Total Super Balance as at 30 June 2025:
- Under $1.76 million: Up to $360,000 using the bring-forward rule
- $1.76–$2 million: Reduced caps apply
- $2 million or more: No further non-concessional contributions allowed
If you’ve triggered a bring-forward period in recent years, it’s essential to review your past contributions to avoid exceeding your limit—and facing tax penalties.
Extra Options for Downsizers and Business Owners
- Downsizer Contributions: If you’re 55 or older, you may be eligible to contribute up to $300,000 per person from the sale of your home into super—without counting toward your non-concessional cap. This must be done within 90 days of settlement.
- Small Business CGT Contributions: For eligible business owners, the lifetime CGT cap for contributing proceeds from the sale of active business assets increases to $1.865 million in 2025–26. Timing matters, especially if assets are held through a trust or company structure.
Proposed New Super Tax for Balances Over $3 Million
After the Labor government’s re-election, the proposed 15% additional tax on earnings from super balances over $3 million is back on the table.
Here’s how it may work:
- Applies to individuals, not SMSFs as a whole
- Based on adjusted TSB at 30 June 2026
- Includes both realised and unrealised earnings
- Example: If one member of an SMSF has $3.5 million and the other has $1.5 million, the new tax would apply to the first member only
If your super balance may approach or exceed $3 million, now is the time to consider strategic contributions, withdrawals, or restructuring options before the tax takes effect.
Why Now Is the Right Time to Act
With super contribution limits, tax rules, and legislation all shifting, the end of financial year is the ideal time to review your super strategy. Whether you’re aiming to reduce tax, build wealth, or prepare for retirement, early planning puts you in control.
Let’s Plan Your Super Together
At Boa & Co. Chartered Accountants, we help individuals, families, and business owners take the guesswork out of superannuation. Our team can guide you through contribution strategies, assess your Total Super Balance, and ensure you stay on the right side of the ATO and new legislation.
To discuss your superannuation goals or prepare for the 2025–26 financial year, contact us today on 1300 952 286, email [email protected], or visit www.boanco.com.au.
Let’s build your retirement confidence—one smart move at a time.