Seven steps to boost your super this tax time
Use carry-forward rules
If you've had years where you didn't put much into super, because of part-time work, caring duties, self-employment, or just life getting in the way, the tax office actually gives you a second chance.
Done right, super is still the most powerful, tax-friendly wealth builder we've got.
It's called the carry-forward concessional contribution rule. If your super balance was under $500,000 at the end of last financial year, you can contribute more than the usual $30,000 cap this year by using up your unused limits from the past five years.
This is ideal if you've had a good income year, sold a property or business, or finally have a bit of breathing room to focus on your future. It's one of the most generous rules in the system - and it's there for people who didn't have the chance to build up their super earlier in life.
Your fund won't track this for you, so check your carry-forward amounts through myGov, or ask your accountant or adviser to help you work it out.
Set up salary sacrifice
From July 1, the Super Guarantee – that's the compulsory amount your employer puts into your super – is going up, to 12 per cent of your salary. That's a win. But if you really want to take control of your retirement income, consider adding a bit extra through salary sacrifice.
Salary sacrifice means asking your employer to send a portion of your pre-tax pay straight to your super. It reduces your taxable income, so you pay less tax, and the money goes into super where it's taxed at just 15 per cent – usually much lower than what you're paying personally.
Even small amounts make a big difference. Let's say you're earning $85,000 and salary sacrifice $5,000. That $5,000 would've been taxed at 30 per cent if you took it as salary – but in super, you save around $750 in tax. And that money keeps working for you, year after year.
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It's easy to set up. Just ask your HR or payroll team, nominate the amount, and they'll sort it. Start with 2 per cent or 3 per cent if that feels manageable. You probably won't notice it missing from your take-home pay, but your super balance will definitely notice it in 10 years time.
Balance your super with your partner
It's common for one partner in a couple to have much more super than the other - especially if one took time out of the workforce or earned less over the years.
Sometimes that's fine, but in other cases, it makes sense to even things out.
If one of you is getting close to the transfer balance cap (currently $2 million), or you want to maximise your combined tax-free income in retirement, rebalancing now can help. You can split up to 85 per cent of last year's concessional (pre-tax) contributions with your spouse using a process called Contribution Splitting.
It doesn't reduce your current year's cap, and it's just a simple form. But it does need to be done before June 30 if you want it counted for this year. Your fund will have the form on their website, so don't leave it to the last minute.
Check how your super is invested
Most people stay in their fund's default investment option, but that might not match your strategy any more. If you're getting closer to retirement, now's the time to make sure your investments are working for the phase you're entering.
That doesn't mean going ultra-conservative. In fact, staying exposed to growth is usually smart. Retirement can last 20 to 30 years, and you need your money to keep growing. But you might want to pair that with a short-term cash or conservative bucket to cover the first few years of income needs.
That way, your longer-term investments can ride the ups and downs of the market, while your cash flow stays steady. It's not about de-risking everything. It's about being strategic and setting yourself up to sleep at night, no matter what the market's doing.
Check your beneficiary nomination
It's one of the easiest things to forget – but one of the most important. Your super doesn't automatically follow your will when you die, which means if you haven't lodged a valid beneficiary nomination with your fund, the money could get tied up in delays or disputes.
In most funds, nominations expire every three years, and many people don't realise theirs has lapsed. It's one of the biggest reasons life insurance payouts get stuck in the system, held up in admin limbo just when families need them most, something we've been hearing a lot about in the media.
So take five minutes. Log in to your fund, check who you've nominated, and make sure it still reflects your wishes. If it's not valid, update it now - future you (and your loved ones) will be glad you did.
Check that your super is in the retirement phase
If you've left work, turned 65, or reached your preservation age and permanently stopped working, you're likely eligible to move your super into what's called retirement phase. And while there's no hard deadline to do this before June 30, tax time is the perfect moment to check that your money is set up the right way.
When your super is still in accumulation phase, the investment earnings inside your account are taxed at 15 per cent. But once your money moves into retirement phase, those earnings become completely tax-free.
So if you've already retired but haven't made the switch, you could be leaking money quietly to the tax office without realising it.
The switch doesn't happen automatically. You need to ask your fund or set up an account-based pension to start drawing down your balance. Once you do that, you'll also be required to take at least a minimum annual income from your account, starting at 4 per cent and increasing as you get older. You can take more.
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This isn't something you have to rush before June 30, but it's absolutely worth reviewing as part of your tax time tidy-up. Every extra month you spend in accumulation phase after retiring is another month your super earnings are being taxed unnecessarily, and that's easy money to save.
EOFY can be a good time to take your super and tax savings seriously. To clean things up, maximise your benefits, and make sure your super is working for your version of retirement, not just ticking along in the background.
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