As the 2025 financial year unfolds, understanding the nuances of superannuation and Self-Managed Super Funds (SMSFs) is paramount for Australian businesses and high-income professionals. Proactive planning can help you maximise your retirement savings, ensure compliance, and avoid potential pitfalls.

This guide breaks down the essential superannuation and SMSF considerations for the upcoming year, offering actionable insights tailored to different circumstances

The superannuation landscape is always evolving. Here are the crucial updates and ongoing considerations for the 2025 financial year:

• Superannuation Contribution Caps: Understanding your contribution caps is vital to avoid excess contributions tax.
  
  • Concessional Contributions Cap: For both the 2024-25 and 2025-26 financial years, this cap (before-tax contributions like employer SG, salary sacrifice, or personal contributions claimed as a tax deduction) remains at $30,000.
    
    • Action: Plan your contributions carefully to stay within this limit.
      
  • Non-Concessional Contributions Cap: For the 2024-25 and 2025-26 financial years, this cap (after-tax contributions) remains at $120,000.
    
    • Action: Monitor your non-concessional contributions closely throughout the year.
      
• Bring-Forward Rule for Non-Concessional Contributions: This rule offers flexibility for those looking to make larger after-tax contributions.
  
  • How it Works: Eligible individuals under 75 can contribute up to two or three years' worth of non-concessional contributions in a single year.
    
  • Eligibility (2024-25 & 2025-26): You must be under 75 at any time in the year you make the contribution, and your Total Superannuation Balance (TSB) on 30 June of the previous financial year must be below $1.9 million (for 2024-25) or below $2.0 million (for 2025-26).
    
  • Action: If you have significant funds to contribute, assess if you can utilise the bring-forward rule based on your TSB. Note that if you trigger this rule, any subsequent changes to the non-concessional cap during your bring-forward period will not apply to you.
    
• Carry-Forward Concessional Contributions: Don't let unused cap amounts go to waste!
  
  • How it Works: If your Total Superannuation Balance (TSB) was less than $500,000 on 30 June of the previous financial year, you may be able to carry forward unused concessional contributions caps from previous years (starting from 1 July 2018) for up to five years.
    
  • Action: Review your TSB and past contributions to see if you have unused cap amounts you can utilise. Important: Unused amounts from the 2019-20 financial year will expire on 30 June 2025.
    
• Downsizer Contributions: A valuable opportunity for older Australians selling their home.
  
  • What it is: If you are aged 55 or over and sell your home, you may be able to contribute up to $300,000 (per person, $600,000 per couple) from the sale proceeds into super. These contributions do not count towards your concessional or non-concessional caps.
    
  • Eligibility: Must be 55 or older, property owned for at least 10 years, used as main residence, and contribution made within 90 days of receiving sale proceeds.
    
  • Action: If you are considering selling your home, investigate if you meet the downsizer contribution criteria.
    
• Transfer Balance Cap (TBC) & Total Super Balance (TSB) Increases: These caps are critical for those in or approaching retirement.
  
  • Transfer Balance Cap (TBC): The general TBC, which limits the amount of super that can be transferred into the retirement phase, will increase from $1.9 million to $2.0 million from 1 July 2025.
    
    • Action: If you are nearing retirement or in the retirement phase, understand how this change impacts your personal TBC and pension strategies.
      
  • Total Super Balance (TSB): The TSB cap, which affects eligibility for various contributions and benefits, will also increase from $1.9 million to $2.0 million from 1 July 2025.
    
    • Action: Be aware of your TSB on 30 June 2025, as it will determine your eligibility for various contribution strategies in the 2025-26 financial year.
      
• Proposed Tax on Super Balances above $3 Million: A significant proposed change that high-balance individuals need to monitor.
  
  • What's Proposed: A 30% concessional tax rate on future earnings for superannuation balances above $3 million is slated to commence from 1 July 2025. This measure is not yet law, but it's important to monitor its progress.
    
  • Action: If your super balance is approaching or exceeds $3 million, seek professional advice to understand the potential impact of this proposed change.
    

Next Steps

Navigating superannuation and SMSF regulations requires careful attention and proactive planning. By staying informed about the latest changes and diligently managing your obligations, you can optimise your super strategy for a more secure financial future.

Don't leave your super to chance! Contact us today to discuss your 2025 superannuation and SMSF planning.