Tax Alert - Planning for Superannuation Contributions before 30 June 2025

Lowe Lippmann Chartered Accountants

Planning for Superannuation Contributions before 30 June 2025


As the end of the financial year is approaching, we take this opportunity to remind you of the various superannuation thresholds, opportunities, obligations and changes, including topics such as:

  • Concessional contributions
  • Non-concessional contributions
  • Superannuation guarantee
  • Impending proposed changes to superannuation from 1 July 2025

Concessional contributions


A concessional contribution is a payment made into your superannuation fund and is subject to tax (known as ‘before-tax contributions’) and includes employer’s compulsory super guarantee contributions, salary sacrificed contributions and personal contributions made by you which is from your after-tax dollars and claiming a tax deduction.


From 1 July 2024, concessional contributions are capped at $30,000 per year and are taxed at 15% upon receipt by the superannuation fund.  However, individuals with income including concessional contributions exceeding $250,000 may be subject to an additional Division 293 tax on the excess of up to 15%, effectively increasing the tax up to 30%.


If you have more than one superannuation fund, all concessional contributions made to all of your funds are added together and counted towards the concessional contributions cap.


The payer (either the employer or the individual making a personal contribution) is generally entitled to a tax deduction for the amount of the contribution.


To see full details for making Concessional Contributions  – click here


Non-concessional contributions


Non-concessional contributions are contributions made from after-tax dollars and the payer (the individual making the personal contribution) does not get a tax deduction for it.


Non-concessional contributions are capped at $0 or $120,000 per year (depending on your personal circumstances), subject to the bring-forward concession, which is the maximum amount of after-tax contributions you can contribute to your superannuation fund each year without contributions being subject to extra tax.


If you have more than one superannuation fund, all non-concessional contributions made to all of your funds are added together and counted towards the non-concessional contributions cap.


To see full details for making Non-Concessional Contributions – click here


Superannuation guarantee


It is compulsory for an employer to pay their eligible employees superannuation guarantee to their nominated superannuation fund, based on their ordinary time earnings and the relevant annual SG rate, by the quarterly due date.


To see full details about Superannuation Guarantee requirements – click here


Impending proposed change to superannuation from 1 July 2025


Additional tax on total superannuation balances over $3 million from 1 July 2025


Following the recent Federal election, the Labor Party is expected to reintroduce a tax Bill which proposes to increase the concessional tax rate applied by 15% on that proportion of future earnings relating to total superannuation balances above $3 million by 15%, rising up to 30%, with a proposed implementation date of 1 July 2025.


To see full details about this proposed change – click here



Please do not hesitate to contact your Lowe Lippmann Relationship Partner if you wish to discuss any of these matters further.

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October 19, 2025
Further guidance on proposed changes to Division 296 from 1 July 2026 Earlier this week, we released a Tax Alert ( click here ) after the Government announced some significant changes to the proposed superannuation rules to increase the concessional tax rate from 15% to an effective 30% rate on earnings on total superannuation balances ( TSB ) over $3 million – known as Division 296. These proposed superannuation rules were set to commence on 1 July 2025, but the Government has now announced significant changes that will delay the start date until 1 July 2026 and apply to the 2026-27 financial year onwards.
October 13, 2025
In response to continuing criticism and significant industry feedback, Treasurer Jim Chalmers has announced substantial revisions to the proposed Division 296 tax. The government has decided not to apply the tax to unrealised capital gains on members superannuation balances above $3 million. The removal of the proposed unrealised capital gains tax is undoubtedly a welcome change. Division 296 was initially set to take effect from 1 July 2025. The revised proposal, effective from 1 July 2026, still imposes an additional tax but now only on realised investment earnings on the portion of a super balance above $3 million at a 30 percent tax rate To recover some of the lost tax revenue, the Treasurer announced a new 40 percent tax rate on earnings for balances exceeding $10 million. It is also anticipated that both tax thresholds will be indexed in line with the Transfer Balance Cap. We will provide more details and guidance on the new proposal as they become available.
October 3, 2025
ATO interest charges are no longer tax deductible – What you can do As we explained in our Practice Update for September, general interest charge ( GIC ) and shortfall interest charge ( SIC ) imposed by the ATO is no longer tax-deductible from 1 July 2025. This applies regardless of whether the underlying tax debt relates to past or future income years. With GIC currently at 11.17%, this is now one of the most expensive forms of finance in the market — and unlike in the past, you won’t get a deduction to offset the cost. For many taxpayers, this makes relying on an ATO payment plan a costly strategy. Refinancing ATO debt Businesses can sometimes refinance tax debts with a bank or other lender. Unlike GIC and SIC amounts, interest on these loans might be deductible for tax purposes, provided the borrowing is connected to business activities. While tax debts will sometimes relate to income tax or CGT liabilities, remember that interest could also be deductible where money is borrowed to pay other tax debts relating to a business, such as: GST; PAYG instalments; PAYG withholding for employees; and FBT. However, before taking any action to refinance ATO debt it is important to carefully consider whether you will be able to deduct the interest expenses or not. Individuals If you are an individual with a tax debt, the treatment of interest expenses incurred on a loan used to pay that tax debt really depends on the extent to which the tax debt arose from a business activity: Sole traders: If you are genuinely carrying on a business, interest on borrowings used to pay tax debts from that business is generally deductible. Employees or investors: If your tax debt relates to salary, wages, rental income, dividends, or other investment income, the interest is not deductible. Refinancing may still reduce overall interest costs depending on the interest rate on the new loan, but it won’t generate a tax deduction.
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