Boost your superannuation before the EOFY deadline

As we touched on last month, now is the time to boost your superannuation before the EOFY deadline. Boosting your super through eligible contributions is a highly tax-effective mechanism to help grow your retirement savings.

The key is understanding the rules, knowing your contribution limits and, most importantly, getting organised early enough to ensure your contribution is received by your super fund before the EOFY deadline.

Last month’s Federal Budget reforms left superannuation relatively untouched, and it remains one of the most tax-effective ways to build long-term wealth. Money invested inside super is generally taxed at a maximum rate of 15%, which is significantly lower than many Australians’ personal tax rates. Over time, this can create a powerful compounding effect that helps grow your retirement savings faster.

For many people, EOFY presents an ideal opportunity to review their superannuation position and take advantage of opportunities to contribute that may otherwise be missed.

Concessional contributions are contributions made from pre-tax income and are generally taxed at 15% within your super fund. For the 2025–26 financial year, the concessional contribution cap is $30,000. This cap includes:

• Employer Super Guarantee contributions
• Salary sacrifice contributions
• Personal contributions claimed as a tax deduction

Many Australians don’t realise that their employer contributions already count towards this limit. That’s why it’s important to review how much has already been contributed before making any additional payments.

Non-concessional contributions are made using money you’ve already paid tax on. For the 2025–26 financial year, the non-concessional contribution cap is $120,000. While these contributions don’t provide an immediate tax deduction, they can still be an effective way to grow your retirement savings in a tax-friendly environment.

This strategy is often used by people who have accumulated savings outside super, received an inheritance or sold an asset and want to strengthen their long-term financial position.

If your total super balance was below $500,000 on 30 June 2025, you may be able to use unused concessional contribution caps from previous financial years under the carry-forward contribution rules. This can create a valuable opportunity to make larger tax-deductible contributions, particularly if you’ve experienced a higher income this year or haven’t consistently maximised your super contributions in the past.

For eligible low- and middle-income earners, the government may help boost superannuation balances through the super co-contribution scheme. If you make a personal after-tax contribution and meet the eligibility requirements, the government may contribute up to $500 directly into your super account. It’s one of the few opportunities where the government effectively contributes to your retirement savings, making it a strategy well worth exploring if you qualify.

Super isn’t always about individual planning. Sometimes the best outcomes come from looking at your family’s overall financial position. If your spouse earns below certain income thresholds, making a contribution to their super may allow you to receive a tax offset of up to $540. This can help build retirement savings more evenly between partners while also providing additional tax benefits.

For SMSF trustees, it’s also a good time to review asset valuations and ensure records are up to date. With proposed changes such as Division 296 continuing to attract attention, maintaining accurate valuations and documentation will be increasingly important. Starting this process early can help avoid last-minute pressure and ensure your fund is well prepared for any future legislative changes.

Every year, people miss out on valuable superannuation contribution opportunities because they leave their contributions until the last minute. One of the most important things to understand is that a contribution generally counts when it is received by your super fund, not when you transfer the money from your bank account. This means:

• BPAY payments can take several days to process
• Bank transfers may be delayed
• Payroll and salary sacrifice arrangements often have earlier cut-off dates
• Super funds can experience higher processing volumes in June

If your contribution arrives after 30 June, it will be recorded in the next financial year instead. That could mean missing a tax deduction, losing access to a contribution strategy you planned to use this year or delaying your wealth-building goals.

For that reason, we strongly encourage clients to act well before the EOFY rush. Allowing at least one to two weeks before 30 June will reduce the risk of processing delays.

A simple EOFY super checklist. Before making any contribution, consider the following:

• Check how much your employer has already contributed this year
• Review your available concessional contribution cap
• Confirm whether you have unused carry-forward contribution amounts available
• Consider whether a government co-contribution or spouse contribution strategy may apply
• Make contributions early to avoid processing delays
• SMSF trustees, review asset valuations
• Seek professional advice before implementing larger contribution strategies

Small actions taken before 30 June can make a meaningful difference to your long-term financial future. The EOFY is a great time to review your super strategy and make sure you’re getting the most from the opportunities available.

The earlier you act, the more likely your contribution will be processed on time and count towards the current financial year. As always, the right strategy will depend on your personal circumstances, financial goals and existing super position. If you’re unsure where to start, speaking with a financial adviser can help you make informed decisions and avoid costly mistakes.

General advice warning: This article contains general information only and does not take into account your personal objectives, financial situation or needs. You should consider obtaining professional advice before making financial decisions.

AFPG has the expertise to guide you in wealth accumulation and protection. We’ve helped hundreds of Australians, singles, couples and families make informed decisions that enable them to live a lifestyle of their choosing.

Contact us today for experienced, compassionate, and professional financial advice.