Last Chance to Boost Super and Cut Tax Before EOFY
If you’re looking for a smart way to boost your superannuation savings and reduce your personal income tax, now is the time to act. With the financial year ending soon, you have just days left to make those important contributions. Here’s how you can take advantage of this opportunity before 30 June 2025.
Who Can Benefit?
The tax benefits of making personal deductible super contributions depend on your individual circumstances.
Broadly speaking, if your taxable income exceeds $22,575 this financial year, you may be eligible for a tax deduction by contributing to your super before 30 June.
Example:
A person earning $90,000 who makes a $5,000 personal deductible contribution could:
- Reduce their tax bill by around $850, and
- Increase their super balance by $4,250,
This is because the marginal tax rate on their income is 30%, while super contributions are typically taxed at only 15%. (A higher rate may apply if you earn over $250,000.)
As always, it’s important to speak with your financial adviser to understand how this applies to your situation.
Who Is Eligible?
- Under 67? You can make personal deductible contributions without meeting any additional conditions.
- Aged 67 to 75? You must meet the “work test” to claim a deduction. Ask your adviser for details.
- Over 75? Unfortunately, you are generally not eligible to make personal contributions.
Contribution Limits
The concessional contributions cap for the 2024–2025 financial year is $30,000 for most people.
This cap includes:
- Employer contributions (super guarantee and salary sacrifice), and
- Personal deductible contributions.
To avoid exceeding the cap (which could result in extra tax), check your contributions so far via:
- Your super fund,
- Your MyGov account, or
- With help from your financial adviser.
How to Claim the Deduction – Step-by-Step
- Check your contribution cap
Confirm how much concessional cap space you have left for 2024–2025. - Make your personal contribution
Contact your super fund to confirm their cut-off date and ensure your contribution reaches your account by 30 June 2025. - Submit a valid notice
Complete the “Notice of intent to claim or vary a deduction for personal super contributions” (ATO form NAT 71121) and submit it to your fund before you lodge your tax return. - Get written acknowledgement
Your super fund will send you a written confirmation that they received your notice. Keep this as proof for your tax return. - Claim your deduction
When lodging your tax return, complete section D12 of the 2024–2025 supplementary return.
Your adviser can guide you through these steps — but time is critical. Don’t leave it too late to make your contribution and secure your deduction.
Disclaimer: The information on this page is for general information purposes only and is not specific to any particular person or situation. There are many factors that may affect your particular circumstances. We advise that you contact Mathews Tax Lawyers before making any decisions.