Superannuation tax tips for the 2025 financial year

Updated April 2025

As the end of the financial year approaches, it’s the perfect time to think about how you can manage your superannuation tax effectively.  

In this article, we share our top tips to consider before the end of the financial year.  

1. Making superannuation contributions

The contribution limits for the year ending 30 June 2025 are: 

Bring–forward arrangements for non-concessional contributions

If you’re under 75, you may be able to contribute up to 3 times the annual non-concessional cap in a single year, depending on your superannuation balance: 

Our top superannuation contribution tips for 2025

• Individuals aged 67 to 75 must satisfy a work test (40 hours of paid employment in a 30-day period) to make concessional contributions (i.e. employer or personal contributions claimed as a tax deduction). 
• Individuals do not need to meet a work test to make non-concessional contributions. 
• Does your total super balance exceed $1.9 million? Check your total super balance at 30 June 2024 to determine your eligibility before making a non-concessional contribution. 
• Are you over 65, and does your superannuation balance contain a high taxable component? You may be eligible to make non-concessional contributions and reduce tax for your beneficiaries on your passing (seek expert advice from your accountant).  
• Contributions made by EFT or BPAY are not deemed to have been made until the contribution appears in your super fund’s bank account. Allow enough time for contributions made via EFT or BPAY to clear and be received by your super fund before 30 June 2025. 
• Ensure any contributions made are within your limits, considering any employer contributions. 

2. Downsizer contributions

Are you over 55 and considering selling your home? 

Individuals aged over 55 who have sold their principal place of residence may be eligible to contribute up to $300,000 to their superannuation fund without needing to satisfy the work test.  

The downsizer contribution is not non-concessional and won’t count towards your contribution caps. You can still make a downsizer contribution if your total super balance is over $1.9 million. 

Our article on downsizer contributions explains the eligibility criteria in more detail.

3. Carry forward unused concessional contributions 

If your total superannuation balance was less than $500,000 at 30 June 2024, you may be able to make additional ‘unused’ concessional contributions in addition to the annual $30,000 concessional contributions cap. Unused amounts of your concessional contributions cap from prior years can be carried forward for a maximum of five years. 

Our article on carry-forward contributions explains in more detail.

4. Satisfying the pension requirements

If you’re receiving a pension from your superannuation fund, you must withdraw a pension that’s within the applicable minimum and maximum limits prior to 30 June 2025. 

It’s crucial to get this right because if the annual pension drawn falls outside the minimum and maximum ranges, you won’t meet your pension requirements, and your superannuation balance will revert to the ‘accumulation phase’ from 1 July of that financial year.  

In the accumulation phase, all investment income and capital gains are taxed at 15% (or 10% for eligible discounted capital gains). 

Additionally, be careful not to exceed your maximum pension amount, as there are penalties for illegally accessing your superannuation benefits early. 

The full set of standard drawdown rates for each age group for the 2025 financial year is: 

5. Do you have a self-managed super fund (SMSF)?

If you operate a SMSF, make sure you do the following before 30 June: 

• Address any prior year management points raised by your auditor.  
• Obtain sufficient evidence to support the market valuation of property and any other unlisted investments owned by the SMSF.  
• The ATO has indicated that only one form of evidence (such as a real estate kerbside valuation) is generally NOT sufficient on its own and must be accompanied by another form of evidence such as comparable sales.  
• Review and update the fund’s investment strategy. Ideally, this review should be noted by the trustees annually in writing (i.e. minuted) as evidence of the review.  
• Pay any outstanding related property trust distribution from the 2024 financial year.  
• Update property lease agreements and apply rental increases as required (e.g. market review or CPI increases).  
• Ensure your SMSF complies with ATO event-based reporting requirements. These apply in which are instances such as commencing or stopping a pension and withdrawal of certain lump sums.  
• Update your SMSF estate and succession plan and ensure it’s consistent with your overall estate plan (e.g. ensure your binding death benefit nominations and enduring power of attorneys are up to date).  
• If you’re receiving employer contributions into your SMSF, ensure your employer has your SMSF’s electronic service address (ESA) appropriately recorded in your employee record. If you’re unsure of what your ESA is, please contact us for help. 

Need help navigating your superannuation requirements?  

For assistance with your superannuation year-end requirements, contact SMSF manager Simon Abbott on 03 5244 6867 or via email.  

This article was written by SMSF Manager Simon Abbott.   

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Disclaimer: The information provided in this article is factual in nature and objectively ascertainable and, therefore, does not constitute financial product advice. Importantly, the factual information that has been supplied does not take into account your personal circumstances, objectives or goals. Davidsons is not licensed to provide any financial product advice nor make any recommendations in respect of any financial product. If you require such advice, you will need to consult a financial adviser who is licensed to provide financial product advice before you make a decision on a financial product.