The countdown to June 30 has begun. For SMSF trustees, this isn’t just the end of the financial year, it’s the final window to optimize your retirement savings and minimize your tax bill. At Pinpoint Finance, we see many Australians miss out on valuable “use it or lose it” contribution caps simply due to timing. (For a refresher on basics, see What Is an SMSF and Who Is It Really For?). Here is how to ensure your fund is strategically positioned for the 2025-26 year-end.
With June 30 fast approaching, now is the time to review your superannuation contributions to ensure you are making the most of the available caps and benefits. We often remind our clients that contribution caps are generally use it or lose it, meaning if you don’t act now, you may miss out on significant tax advantages.
1. Know Your Limits: The 2025-26 Caps
To avoid excess contribution implications, you must stay within the established annual limits for the current financial year.
Concessional Contributions (CC): The current annual cap is $30,000. This includes employer Super Guarantee payments and any personal contributions you intend to claim as a tax deduction.
Non-Concessional Contributions (NCC): These after-tax contributions have a cap of $120,000 per annum, provided your Total Superannuation Balance (TSB) was less than $1.9 million at the start of the financial year. If eligible, you may also use the bring-forward rule to contribute up to $360,000 over three years.
Looking Ahead: For your long-term planning, it is expected that from 1 July 2026, these caps will increase to $32,500 for CC and $130,000 for NCC.
2. Strategic Boosters for Your Balance
Beyond standard caps, several strategies can help you maximise your super:
Carry-Forward (Catch-up) CCs: If your TSB was under $500,000 on June 30 of the previous year, you may be able to use unused concessional cap amounts from the last five years. This is an effective way to offset high taxable income or large capital gains this financial year.
Contribution Splitting: You can apply to transfer up to 85% of your concessional contributions to your spouse’s account. This is a powerful tool to even out member balances, helping you manage Total Superannuation Balance and Transfer Balance Caps.
Downsizer Contributions: If you are 55 or older and sell a home you have owned for at least 10 years, you may be able to contribute up to $300,000 ($600,000 for a couple) into super without it counting toward your NCC caps.
3. Crucial EOFY Compliance
To ensure your strategies are valid and your fund remains compliant, pay close attention to these requirements, and remember your general SMSF Trustees: Obligations You Must Understand.
The Notice of Intent (NAT 71121): If you are claiming a deduction for personal contributions, you must provide the trustee with a valid notice of intent. This must be lodged by the earlier of the day you lodge your tax return or the end of the next financial year. Crucially, the notice is only valid if the fund still holds the contribution and has not already used it to start a pension.
Timing of Receipts: Contributions must be received by your SMSF’s bank account by June 30 to count for this year. Simply initiating a transfer is not enough, as banking delays can occur. We recommend clearing all contributions by June 23 to ensure they are processed in time.
Minimum Pensions: If you are in the pension phase, you must draw the minimum required amount before June 30, or the fund may lose its tax-exempt status for the year.
Market Valuations: All SMSF assets must be valued at market value as of June 30. While listed assets are simple, unlisted investments and property require documented evidence, such as market appraisals or lease agreements.
4. High Earners and Division 293 Tax
For those with an adjusted taxable income over $250,000, an additional 15% tax applies to concessional contributions.
While deductible contributions are added back for the Division 293 calculation, meaning the total “income” figure for this tax usually remains the same, the strategy remains highly effective. Even with the extra 15% tax, your contributions are being taxed at a total of 30%, which is significantly lower than the 47% top marginal rate (including Medicare Levy).
Frequently Asked Questions (FAQ)
Q: Can I catch up on unused contribution limits from previous years?
A: Yes, if your TSB was under $500,000 at the previous June 30, you can use unused portions of your concessional cap from the last five years.
Q: What is the deadline for my contribution to count for this financial year?
A: The contribution must be received by the fund’s bank account by June 30.
Q: How do I claim a tax deduction for personal contributions?
A: You must provide a valid Notice of Intent (NAT 71121 form) to your SMSF trustee by the earlier of lodging your tax return or the end of the following financial year.
Q: Does contribution splitting reduce my own concessional cap?
A: No, your SMSF reports all contributions against your cap for the year they were made, even if they are later transferred to your spouse.
Q: Can I contribute assets other than cash?
A: Yes, these are known as in-specie contributions. SMSFs can accept transfers of listed shares or business real property from members at market value.
Q: What happens if I forget to draw my minimum pension before June 30?
A: The fund may lose its tax exemption on its earnings for that financial year.
At Pinpoint Finance, we know that managing an SMSF can feel like a full-time job, especially as the end of the financial year looms. The strategies mentioned here offer fantastic opportunities to secure your financial future, but they do come with complex compliance hurdles that require careful navigation.
Whether you are looking to maximise your catch-up contributions or considering a contribution-splitting strategy with your spouse, getting the details right is the key to peace of mind. We are here to help you review your position and ensure your fund is working as hard as you are, reach out to us today at Pinpoint Finance to discuss how we can streamline your EOFY planning.