Super EOFY 2025:
What You Need to Know

As we approach 30 June 2025, it’s time to check in on your superannuation strategy. Whether you’re looking to maximise contributions, time a non-concessional contribution bring-forward arrangement, or prepare for the new $2 million Transfer Balance Cap, there are several important rules and deadlines to keep in mind.

We recommend making contributions by 20 June to allow for processing delays.

To help you make the most of your options, we’ve outlined the main types of contributions, limits, and planning points.

Concessional Contributions : Maximise Your $30,000 Cap Before 30 June

The concessional (before tax) contributions cap for FY2025 is $30,000. Contributions can include any combination of; employer super guarantee, salary sacrifice arrangements, or member deductible contributions.

To qualify for this cap:

• Contributions must be received by your fund before 30 June 2025
• Individuals aged under 75 may be eligible to contribute
• After 75 years of age only mandated employer contributions can be made

It is recommended that contributions be banked no later than 20th of June 2025 to ensure they are counted towards the FY ended 30 June 2025 financial year.

The employer super guarantee rate will increase to 12% effective 1 July 2025, so now is a good time to review your arrangements for FY2026.

Claiming Member Deductible Contributions

In order for an individual to claim a member deductible contribution the following conditions must be met:

• Ensure there is enough assessable income to claim the deduction, if not, the contribution will be treated as a non-concessional contribution,
• Complete the notice of intent to claim a deduction (S290-170 Notice) and receive an acknowledgement of receipt notice of your Sec 290-170 Notice from your super fund within the required time frame, and
• Meet the work test (outlined below) if aged between 67 and < 75.

Unused Carry Forward Concessional Contributions

If your total superannuation balance was under $500,000 as at 30 June 2024, and you haven’t used your full concessional contribution caps over the previous 5 years (since FY2020), you may be eligible to make catch-up contributions.

Eligibility criteria includes:

• Total superannuation balance (TSB) must be less than < $500,000 as at 30 June 2024.

• For the FY ended 2025 if the member is < 67 years of age; no work test is required.
• If aged between 67 but < 75 years of age; you must pass the work test if claiming a member deductible contribution.
• Unused carry-forward concessional contributions can be made via a salary sacrifice arrangement and/or as a member deductible concessional contribution.
• Have enough personal income to claim the member deductible concessional contribution.

If this is of interest, please contact us as there are other factors that need to be considered to ensure you don’t inadvertently exceed your concessional contribution caps.

Non-Concessional Contributions – Key Limits And Eligibility

Non-concessional (after tax) contributions are capped at $120,000 per annum, with a potential to contribute up to $360,000 under the bring forward provision (see below for further details).

Eligibility criteria includes:

• You have not triggered the bring forward provisions over the prior two financial years.
• Your Total Superannuation Balance (TSB) across all super funds is less than than $1.9 million as of 1 July 2024.
• If < 75 years of age, the work test no longer applies.
• If your TSB is in excess of $1.9 million as at 30 June 2024, you cannot make any further non-concessional contributions this year.

Bring Forward Rule: Time It Carefully Around the $2M Cap

Individuals < 75 years of age may be able to utilise the full bring forward non-concessional provisions if they have not previously triggered the bring forward provision over the last two years and their TSB (across all superfunds) is less than $1.66 million.

From 1 July 2025, the general Transfer Balance Cap (TBC) increases to $2 million. This will impact any bring forward arrangements you may be planning to make.

If you haven’t triggered the bring-forward arrangement yet and your TSB is below the relevant threshold, you may be eligible to make the following:

2024/2025 bring forwards eligibility.

If you wait until after 1 July 2025, the thresholds shift upwards:

2025/2026 bring forward eligibility.

Note – if you trigger the bring-forward rule now, your caps are locked into the current threshold – that is $1.9 M if entered after 1 July 2023, $1.7 M if entered after 1 July 2021. Depending on your personal  circumstances, waiting until July 2025 could increase how much you’re able to contribute.

Careful timing around triggering a bring forward arrangement should be considered in light of the new caps and your personal circumstances, please contact us if you need assistance with understanding the options available to you.

Age and the work test: What Applies from 67 to 75 years

The work test will only apply for those aged between 67 and 75 years of age, wanting to make a member deductible concessional contribution.

To meet the test, you must:

• Be gainfully employed for at least 40 hours over a continuous 30-day period, in the financial year in which the contributions are made.
• Note: Passive income such as dividends, rental, or volunteer charity work, does not meet the definition of gainful employment.

If you are unsure how this may impact you, please contact us.

If you’re turning 75 this year, contributions must be received no later than 28 days after the end of the month in which you turn 75.

After age 75, a member can only make mandated employer contributions and downsizer contributions (if eligible).

Recontribution strategies : Planning Ahead for the Proposed Division 296 > $3 Million Balance

With the proposed Division 296 tax (on balances over $3 million) which is not yet legislated, it may be worth considering recontribution strategies for a number of reasons –

• For couples where one member has a high balance and the other has a relatively low balance this may assist in reducing the disparity between the two and help reduce the impact of the proposed Div 296 tax.
• Change taxable components to tax free as non-concessional contributions are tax free when paid out to non-tax dependants on the death of a member, whilst taxable components are generally taxed at 15% plus Medicare levy. This may assist with estate tax planning.

Certain criteria will need to be met, such as meeting a condition of release; we can assist you in this if this is of interest.

We’re monitoring developments on Division 296 and will provide further guidance once the legislation is confirmed. As this area is complex and evolving, we recommend staying up to date before acting.

Income Streams & Transfer Balance Cap: What to Do Before and After 30 June

If you’re already receiving an income stream from your super fund, or you’re considering starting one soon, there are two key things to keep in mind as we approach EOFY:

1. Meet Your Minimum Pension Obligation by 30 June

If you’ve commenced an income stream, you must withdraw the required minimum pension amount in cash before 30 June 2025. To allow for bank processing times, we recommend doing this by 20 June.

Failing to meet the minimum pension standards, may result in the pension being treated as having ceased, and the fund could lose its tax exemption on income earned whilst in pension phase.

To calculate your minimum payment obligation, multiply the percentage in the below table by your pension account balance at 1 July each year. Alternatively, if you commenced part way through the year, please contact us.

Minimum Pension table

If you are considering commencing an income stream on 1 July 2025, please contact us so we may prepare pension commencement documents and lodge a transfer balance account report with the Australian Taxation Office.

2. Plan Ahead for the New $2 Million Transfer Balance Cap (TBC)

The Transfer Balance Cap (TBC) is the maximum amount you can use to commence a retirement income stream.

From 1 July 2025, the general TBC will rise from $1.9 million to $2 million, offering eligible individuals an opportunity to commence or increase an income stream with a higher limit.

Key considerations:

• If you’ve never commenced an income stream, the available amount to you will be $2 million as of 1 July 2025.
• If you’ve previously used part of your TBC cap, your personal cap will increase proportionally
• If you’ve already used your full TBC cap, you won’t benefit from the increase
• Timing matters — some individuals may choose to wait until after 1 July to commence a new income stream

Final Note: Waiting on Division 296 Legislation

As a reminder Division 296 – the proposed additional tax on individuals with total super balances above $3 million – has not been legislated.

If it proceeds as outlined, you will still have time to act before 30 June 2026. Until we have further certainty on what form it may take, it would be wiser to retain your assets inside the super environemnt. If it does not eventuate exactly as suggested by Treasurer Chalmers, you will be unable to unwind any withdrawals as you will be limited to the contribution caps. As always, we will keep you updated once we know more.

Need Help?

Every client’s circumstances are different. If you’re unsure how these rules apply to you, or whether action is needed before 30 June, don’t hesitate to contact your SIP adviser.

As always, we are here to assist you, reach out to either Sharon Gdanski or your director relationship to see if you are eligible or if any of these strategies may assist you.

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The above summary is intended to be general in nature. Should you believe that any of the above matters may be relevant to you or your Group’s particular circumstances, please discuss the specific details with your Slomoi Immerman Partners adviser.