Updated May 2024

As the end of the financial year approaches, it’s a good time to consider how you can manage your superannuation in a tax-effective manner.

In this article, we outline our top superannuation strategies.

1. Making superannuation contributions

The contribution limits for the year ending 30 June 2024 are:

Contribution typeContribution cap
Concessional contributions cap
(tax-deductible contributions)
Annual cap = $27,500
Non-concessional contributions
(undeducted contributions)
Annual cap = $110,000 or

Bring-forward arrangement = up to $330,000

Note that individuals can only make non-concessional contributions if their total superannuation balance (TSB) was less than $1.9 million at 30 June 2023.

Bringforward arrangements for non-concessional contributions

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

Total superannuation balance at 30 June 2023Bring-forward available
Less than $1.68 million$330,000
Between $1.68 million and $1.79 million$220,000
Between $1.79 million and $1.9 million$110,000
Greater than $1.90 millionNil

Our top superannuation contribution tips for 2024

  • Individuals no longer need to meet a work test to make non-concessional contributions.
  • 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).
  • Does your total super balance exceed $1.9 million? Check your total super balance at 30 June 2023 to determine your eligibility before making a non-concessional contribution.
  • 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 2024 (and keep in mind that 30 June falls on a Sunday this year, so it’s extra important to get the timing right).
  • Ensure any contributions made are within your limits, taking any employer contributions into account.

2. Downsizer contributions

Are you over 55 and considering selling your home?

From 1 January 2023, 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. This was lowered from the previous age of 60.

The downsizer contribution is not a non-concessional contribution and won’t count towards your contribution caps. It can still be made if you have a total super balance greater than $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 2023, you may be able to make additional ‘carry forward’ concessional contributions in addition to the annual $27,500 concessional contributions cap. Unused amounts of your concessional contributions cap accrued from the 2019/20 financial year can be carried forward for a maximum of 5 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 2024.

It’s crucial to get this right because if the annual pension drawn falls outside the minimum and maximum ranges, your pension requirements will not be met 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%.

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

Note: The temporary 50% COVID reduction no longer applies.

The full set of standard and temporary rates for each age group for the 2024 financial year are:

AgeMinimum payment rates
Under 654%
65 – 745%
75 – 796%
80 – 847%
85 – 899%
90 – 9411%
95+14%

5. Do you have a self-managed superannuation 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 unlisted investments owned by the SMSF. Property investments are one of the most common unlisted investments, and 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 with another form of evidence such as comparable sales
  • Review and document 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 2023 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 Davidsons for help.

Need help navigating your superannuation requirements?  

Chat with our experienced team

For assistance with your superannuation year-end requirements, please contact SMSF Manager Simon Abbott on 03 5244 6867.

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This article was written by SMSF Manager Simon Abbott.

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.

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