As we approach the end of the 2024–25 financial year, it’s a crucial time to review your financial position and take advantage of opportunities that can improve your tax outcomes, boost your retirement savings, and prepare for upcoming legislative changes. Here’s what you should consider.

1. Superannuation Contributions: Types and Benefits

Concessional Contributions (Before-Tax)

  • Annual cap: $30,000 for 2024–25.
  • Includes employer Super Guarantee (SG), salary sacrifice, and personal deductible contributions.
  • Taxed at 15% within the fund (or 30% if your income exceeds $250,000).
  • Must be received by your fund before 30 June 2025 to count for this financial year. This means that just because you pay the contribution before 30 June, it does not mean that the fund receives your contribution in time.
  • Friday the 20th of June should be last date to make your contributions
  • Employers and employees should note that from 1 July 2025 the super guaranteed rates increases from 11.50% to 12.00%.
  • You may need to alter any salary sacrificing arrangements after this increase to avoid going over your concessional contribution cap

Non-Concessional Contributions (After-Tax)

  • Made from after-tax income and not taxed in the fund.
  • Annual cap: $120,000, or up to $360,000 under the bring-forward rule (if under age 75 and eligible).
  • If you intend on making non-concessional contributions to your super account, please reach out to your financial adviser first.

Government Co-Contribution

  • If you earn less than $43,445, the government may contribute up to $500 when you make a non-concessional contribution of $1,000. This is essentially a 50% return.
  • Phases out completely at $58,445 income 

Spouse Contributions

  • Contribute up to $3,000 to your spouse’s super (if they earn under $37,000) and receive a tax offset of up to $540.
  • Please notify your accountant if you make a spouse contrition as your super fund does not automatically report this type of contribution to the ATO.

Contribution Splitting

  • You can split up to 85% of your concessional contributions with your spouse.
  • Useful for managing tax, equalising balances, or accessing super earlier (if your spouse is older).
  • Spouse splitting cannot be done if the receiving spouse is age 65 or older.

2. Account-Based Pensions: Minimum Drawdowns

  • Account-Based pensions and Transition to retirement pensions have mandatory minimum pension payments which be made by 30 June 2025 to meet compliance.
  • If you have a Self-Managed superannuation fund, you may need to process additional payments to ensure you meet the minimum.
  • If you have an industry or retail super fund, your fund will automatically make any minimum payments if needed.

3. What to look out for next Financial Year

  • Division 296 – tax on superannuation balance above $3,000,000
    Although this tax is not yet law, it is likely that Labor and the Greens will push through this law.
  • Centrelink deeming rates – income test deeming rates have not yet been mentioned in the media or by politicians, but it is possible that the government will increase the income test deeming rates from their very low base in July. This will not likely result in many people losing the age pension (unless you or your spouse are earning an income and on a small pension) but it will likely result in many people seeing their pension reduced.

4. Quick Financial checklist

  1. Do you have a binding beneficiary on your super account?
  2. Is your will still appropriate? Marriage, divorce, new family members or a beneficiary/executor passed away.
  3. Are your Power of Attorney still appropriate?
  4. Are your insurance benefits still appropriate?
    Life, TPD, Trauma and Income Protection?
  5. Has your home loan lender passed on the past 2 interest rate cuts?
    If you interest rate is above 5.8% you may be paying more interest than you need.
  6. Do you have a backup cash reserve to cover 3 months of expenses?

Need help preparing for EOFY?

Now’s the time to act. Whether it’s optimising your super contributions, reviewing your pension strategy, or making sure your financial affairs are in order — our advisers at Benjamin King Money Wealth are here to help.

Get in touch today to ensure you’re making the most of the 2025 financial year-end opportunities.

This information is general and does not account for your personal goals, needs, or financial situation. Before acting on it, ​consider whether it suits your circumstances. If it involves a specific financial product, review the relevant product disclosure ​statement and/or Target Market Determination before making a purchase decision.

Leave a Reply