Are you Ready for the End of the Financial Year?

As June 30 draws closer, now is the perfect time to start thinking about potential ways to reduce your taxes and implement end of financial year tax planning strategies.

With thoughtful planning, you can transform filing your taxes from a frustrating ordeal into an opportunity to optimise your tax situation.

Concessional Contributions

This financial year, you can make concessional (pre-tax) contributions to superannuation of up to $30,000 per annum.

If your employer isn’t able to help with this, you can easily make the contribution yourself and then claim a tax deduction when you lodge your tax return.

Carry-Forward Contributions

If your super balance is below $500,000 on 30 June 2025, you could be eligible to carry forward your unused concessional contributions cap for up to five years in the coming financial years.

Note that contributions, including salary sacrifice contributions and employer Superannuation Guarantee Contributions (SGC), may have already used up part of your concessional contributions cap.

Please seek professional advice before making any contributions and ensure you do not exceed the cap, or you may have to pay additional tax.

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Non-concessional Contributions

If you are eligible, you can also make non-concessional (after-tax) contributions of up to $120,000 per annum this financial year.

This is worth considering if access to the funds is not needed until you meet a “condition of release.”

The most common conditions of release are when you:

have reached your preservation age and retired
has reached their preservation age and begins a transition-to-retirement income stream
cease an employment arrangement on or after the age of 60
are 65 years of age (even if you haven’t retired)

If you’re under 75 years of age, you could be eligible to bring forward future non-concessional payments via the two- and three-year bring-forward rule and contribute $240,000 (two-year) or $360,000 (three-year) in the current financial year.

Before making any contributions, we recommend speaking to a professional.

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Transfer Balance Cap

From the following financial year (1 July 2025), the $1.9M transfer balance cap (TBC) will increase to $2M.

If you are beginning your transition-to-retirement income stream (e.g. pension) after this financial year, your TBC will be $2M.

If you started a pension in the current financial year and your transfer balance cap account was less than $1.9M, you may be eligible to slightly increase the cap.

There are a lot of elements to consider, and depending on your situation, your personal TBC may be between $1.9M and $2M.

Due to its complexity, it’s best to speak to a professional before making any contributions towards your TBC.

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Split Your Super with Your Spouse

Contribution splitting allows you to transfer part of your concessional contributions (pre-tax contributions) made this financial year to your spouse.

Contributions you can split are:

Super Guarantee
salary sacrifice
employer voluntary
personal deductible contributions

To be eligible, the receiving spouse must be under the age of 60 or between the ages of 60–65 and must not be retired.

The split must be lodged in the following financial year in which the contribution was made.

For example, if the contribution was made in the financial year 2024–2025, the split must be lodged in the financial year 2025–2026.

Contribution splitting may be worth considering if you want to:

boost your spouse’s retirement savings
gain access to your super sooner (if your spouse is older)
enhance your pension benefits

In-specie (Off-market) Transfers

Another way to contribute to superannuation is through an in-specie transfer – the transfer of non-monetary assets without converting them into cash.

Be aware that limitations apply, and the contribution caps mentioned above are applicable.

For more information, reach out to us on (02) 9188 2903 to speak to a member of our team.

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Tax planning is an important part of managing your finances, and a little preparation now can make a big difference in the future.

Before making any decisions, take your personal circumstances, goals, and needs into account – and consider speaking with a qualified professional.

If you’d like to make the most of your financial year, our team of advisers is here to help.

Give us a call on (02) 9188 2903 or click the “Get advice” button below to get in touch.

This information is general advice only and does not take into account your objectives, financial situation and needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your needs, objectives and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice. Where a financial product has been mentioned, you should obtain and read a copy of the Product Disclosure Statement prior to making any decisions. Past performance is not a reliable indicator of future performance.

Esencia Wealth Pty Ltd AFSL 511532 ABN 72 628 641 921

As June 30 draws closer, now is the perfect time to start thinking about potential ways to reduce your taxes and implement end of financial year tax planning strategies.

With thoughtful planning, you can transform filing your taxes from a frustrating ordeal into an opportunity to optimise your tax situation.

Tax planning is an important part of managing your finances, and a little preparation now can make a big difference in the future.

Before making any decisions, take your personal circumstances, goals, and needs into account – and consider speaking with a qualified professional.

If you’d like to make the most of your financial year, our team of advisers is here to help.

Give us a call on (02) 9188 2903 or click the “Get advice” button below to get in touch.

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