Super Contributions: your most overlooked tax lever before 30 june
Most people understand that superannuation is a good long-term investment. Far fewer realise it's also one of the most powerful short-term tax levers available; and one that needs to be pulled before June 30, not after.
With the cash rate now at 4.35% and the cost of living rising on almost every front, the ability to reduce your taxable income through strategic super contributions is more relevant than it has been in years.
Here's what you need to know before the financial year ends.
Tax you don't pay before June 30 is tax you owe after June 30.
Super contributions are one of the few remaining levers that can genuinely change your outcome.
How Concessional Contributions Work
Concessional contributions are contributions made to super from pre-tax income. They are taxed at 15% inside the super fund… significantly lower than most individuals' personal marginal tax rate.
The concessional cap for 2025–26 is $30,000. This figure includes:
• Employer Superannuation Guarantee contributions (currently 11.5%)
• Any salary sacrifice contributions
• Personal contributions for which you claim a tax deduction
For a business owner or self-employed individual earning $180,000 and paying tax at 45% (plus Medicare), the effective tax saving from redirecting $20,000 into super rather than taking it as income is approximately $6,000.
Who Can Claim a Deduction for Personal Contributions?
Since 2017–18, most working Australians can claim a personal super contribution as a tax deduction; regardless of whether they're employed, self-employed, or a mix.
The requirements are:
• You are under 75 years of age (those aged 67–74 must also meet a work test)
• The contribution is made to a complying super fund
• You lodge a Notice of Intent to Claim a Deduction with your fund before lodging your tax return (or June 30 of the following year, whichever is earlier)
• Your fund acknowledges the notice in writing
The notice step is the one most people miss. Making the contribution is not enough. You must formally notify the fund of your intention to claim the deduction. Without that notice, the contribution is treated as non-concessional (after-tax), and you lose the deduction.
Catch-Up Contributions: The Option Most People Don't Know About
Since 2019–20, individuals with a total super balance below $500,000 on 30 June of the prior year have been able to carry forward unused concessional contribution cap amounts from up to five previous financial years.
In plain English: if you didn't contribute the full $27,500 (the previous cap) in 2022–23 or 2023–24, you can make up that shortfall now, and deduct the entire amount.
This creates opportunities that most people overlook entirely:
• Someone who took parental leave and had low super contributions for two years may be able to contribute an extra $30,000–$60,000 this year
• A business owner who had a lean year and skipped super contributions can catch up and reduce a larger-than-expected profit
• An investor who realised a capital gain this year can use catch-up contributions to offset some or all of that gain
To find your available catch-up amount, log into MyGov and check your ATO online services (it's displayed under the super section).
Non-Concessional Contributions: A Different Strategy
Non-concessional contributions are made from after-tax income. They don't give you a tax deduction, but once inside super, the earnings on those funds are taxed at a maximum of 15% (and 0% if the fund is in pension phase).
The non-concessional cap for 2025–26 is $120,000, with a three-year bring-forward of up to $360,000 available to eligible individuals.
This strategy makes sense when:
• You've received a windfall (inheritance, property sale proceeds, business sale) and want to shelter it in a low-tax environment
• You're approaching retirement and want to maximise your super balance while you still can
• Your super balance is below where you'd like it to be and you have savings outside super
Timing Is Everything
The June 30 deadline for super contributions is absolute. Unlike some tax strategies, there is no extension and no grace period. A contribution made on July 1 is a contribution for the 2026–27 financial year, not 2025–26.
For personal contributions in particular, factor in processing time. Most funds require two to three business days to process a contribution. If June 30 falls on a weekend (it doesn’t in 2026 - it's a Tuesday), you need to ensure the money is received by your fund by then.
Best practice: aim to have contributions made by June 25. Leave no room for bank processing delays.
Common Mistakes
• Making a contribution but forgetting to lodge the Notice of Intent
• Exceeding the concessional cap without realising it. Excess contributions are taxed at your marginal rate plus an interest charge
• Assuming your employer contributions are zero. They count toward your $30,000 cap
• Not checking catch-up eligibility… it's basically free money for those who qualify
• Waiting until the last week of June and running into bank processing delays
What to Do Next
Log into MyGov and check your current super balance and any available carry-forward amounts. Then speak to your accountant or financial planner about how much you can contribute and what the tax saving looks like for your specific situation.
This is a decision that needs to be made before June 30. After that date, the opportunity is gone for another year.
If you'd like us to run through the numbers for your situation (your income, your super balance, your available catch-up)… we're offering a complimentary 30-minute super contribution review between now and 20 June.
Drop us an email: hello@refreshadvisory.com.au