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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