2025-2026 End of financial year super planning

With the end of the financial year fast approaching, it’s time to undertake a final review of your superannuation to ensure that you have maximised your tax and retirement benefits for the 2025-26 year.

What should you be considering in terms of superannuation prior to 30 June 2026?

1. Maximise your super contributions

Ensure that you have maximised your annual concessional (tax deductible) and non-concessional (undeducted or after-tax) super contributions. The following tables summarise the contribution caps for the current financial year.

Concessional contributions

• This cap is inclusive of any 12% compulsory employer contributions made on your behalf (from 1 July 2025).
• Those earning more than $250,000 will pay an additional 15% contributions tax on their concessional contributions.
• Individuals aged 67 to 74 must satisfy the work test to claim a tax deduction for personal concessional contributions.
• If you are over age 75, only mandated employer contributions are permitted.

Non-concessional contributions

• Individuals with total super balances of $2 million or more at 1 July 2025 are not eligible to make non-concessional contributions.
• Less than $1.76M – up to $360,000 over 3 years
• $1.76m to <$1.88m – up to $240,000 over 2 years
• $1.88m to <$2.0m – up to $120,000 (no bring-forward)
• If you are over age 75, non-concessional contributions are not permitted.

Please note: Your super contribution is only counted in this financial year if received by your super fund prior to 30 June 2026. We recommend making final contributions by 25 June 2026 at the latest. 

2. Review your salary sacrifice agreement

Review your salary sacrifice agreement to ensure that you have maximised your contributions for the 2025–26 financial year.

If you do not have an arrangement in place, consider establishing one. The super guarantee rate is now 12% from 1 July 2025, which should be factored into your planning.

3. Personal concessional contributions (employees and self-employed)

Self-employed individuals, or those with investment income, should consider personal concessional contributions to reduce taxable income.

Employees can also contribute personally, provided total concessional contributions (including employer contributions) do not exceed $30,000.

To claim a deduction:

• You must lodge a notice of intent to claim a deduction with your super fund
• You must receive an acknowledgement

Without this, the deduction will be invalid.

4. Carry-forward concessional contributions

You can roll forward any unused concessional contributions cap for five years (after which they expire). If you don’t use the full amount of your concessional contributions cap in any year, you can always carry-forward the unused amount and take advantage of it up to five years later. This is provided your total super balance is less than $500,000 on 30 June of the previous financial year. Unused cap amounts are available for 5 years and expire after this. For example, a 2020–21 unused cap amount that is not used by the end of 2025–26 will expire.

For those on a high taxable income, this can be a useful strategy to offset this income provided you have unused cap available and are eligible to make the contribution.

5. Split concessional contributions with your spouse

You can split up to 85% of prior year concessional contributions with your spouse if they are:

• Under preservation age, or
• Aged between preservation age and 65 and not retired

This may assist where one spouse has a lower super balance or is closer to retirement.

6. Make a downsizer contribution

If you are aged 55 or over and sell your main residence, you may be able to make a once off contribution up to:

• $300,000 per person
• $600,000 per couple

If you meet the eligibility requirements, no work test applies and contributions are not subject to caps. However please note there are timing requirements, if you have sold or planning to sell your home please contact our office for further information.

7. Make a spouse super contribution

You may be entitled to an income tax offset of up to $540 for superannuation contributions for the benefit of a lower income (under $40,000) who is under age 75 and whose total super balance does not exceed the general transfer balance cap of $2 million for 2026 income years.

8. Government co-contribution

If you are under age 71, engaged in employment and your total income is less than $62,488, the government will co-contribute 50 cents for every $1 of any non-concessional (undeducted) super contributions that you make, up to a maximum of $500. This may be a useful strategy for low-income working spouses or adult children working part-time.

9. First Home Super Saver Scheme (FHSSS)

Under the First Home Super Saver Scheme, voluntary contributions to your super fund may be withdrawn to help buy or build your first home. Under the scheme, you can withdraw up to $15,000 of eligible contributions made over a financial year or up to $50,000 in total for all years, plus an amount that represents deemed earnings. Non-concessional contributions can be withdrawn tax free. Concessional contributions and total earnings will be taxed at marginal tax rates with a tax offset of 30%.

10. Consider starting a pension

If you have reached preservation age, (60 for those born after 1 July 1964) you can start a ‘transition to retirement income stream’ (TRIS) and draw up to a maximum of 10% of your account balance each year. This is irrespective of whether you continue to work or not. Many use this strategy to reduce their personal tax but more importantly, increase their contributions to superannuation whilst supplementing their reduced take-home pay with their pension withdrawal.

Alternatively, if you are over age 65, or have ‘retired’ you may convert your TRIS to a ‘retirement phase pension’. The earnings on super funds paying retirement phase pensions are tax free up to the pension transfer balance cap set at $2 million after 1 July 2025 and $2.1 million after 1 July 2026.

It would be wise to wait until 1 July 2026 to start a pension to make use of the increased threshold.

11. Draw your minimum pension before year end

If you are already drawing a superannuation pension, please ensure that your fund has paid you the minimum pension before 30 June 2026. The minimum pension for the year is based on a percentage of your fund member balance as at 1 July 2025, or, if you started your pension during the year, it is based on pro-rata amount. The minimum pension percentage factor for the 2025-26 year is as follows:

There is no maximum annual limit to your account-based pension, unless you are under age 65, still working and drawing a TRIS pension from your super fund, in which case the maximum annual limit is 10%.

12. Considering setting up an SMSF

If you are setting up an SMSF, consider delaying until after 30 June 2026 to avoid incurring a full year of compliance costs for a partial year.

13. Consider the Division 296 cost base reset

SMSF trustees will have the option to reset the cost base of fund assets to their market value as at 30 June 2026 for Division 296 purposes.

It’s important to note that this is an all or nothing election. If made, it will apply to all CGT assets held by the fund at 30 June 2026, trustees cannot select individual assets to reset.

The election is not required immediately. It will be made as part of the 30 June 2027 SMSF annual return, which is generally due by 15 May 2028.

However, trustees should carefully consider the potential implications before making this decision.

For example, if an asset’s market value at 30 June 2026 is lower than its existing cost base, choosing to reset will effectively lock in that lower value. This could result in a higher capital gain being subject to Division 296 tax in the future when the asset is sold.

In preparation, trustees will also need to obtain reliable market valuations for relevant assets, such as property or unlisted shares and units.

While an independent valuation is not strictly required, it is often worth considering, as it provides a more robust and defensible position should the ATO review the valuation.

Given the time and effort involved, it may be sensible to begin organising valuations well in advance of 30 June 2026.

This article was co-authored by Natalie Scott; Sydney Superannuation Manager.

Important information
This publication has been prepared to provide you with general information only. It is not intended to take the place of if professional advice and you should not take action on specific issues in reliance on this information. In preparing this information, we did not take into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you need to consider (with or without the assistance of an adviser) whether this information is appropriate to your needs, objectives and circumstances.