Seven tips to help you chart a better course at tax time

Two in three Australians admit they don’t know how to make the most of their super, research from CFS shows. But knowing the ropes when it comes to maximising the tax advantages of your super could help you get more from your money this financial year and avoid some common missteps. Below are seven tax-time tips to help your super grow faster.

1. Check all your super reached your account 
2. Make a pre-tax contribution 
3. Know your limits 
4. Do the paperwork to claim the deductions 
5. Catch up if you can 
6. Consider spousal contributions 
7. Compare other investments with super 

After each quarter, your employer must make the minimum compulsory Super Guarantee payment into your super account within 28 days. For the 2024-25 financial year, this is equivalent to 11.5% of your ordinary time earnings and it applies to most full-time, part-time and casual employees*.  

Just as most of us would check our change, it’s worth making sure all super contributions land in your account so your money earns all the returns you’re entitled to. The best way to check is to log in to your super account. You can use the ATO’s Super Guarantee estimator to check your entitlements, and if you believe there’s been a mistake, talk to your employer. There are ways to follow up super payments from past employers as well. 

Making eligible voluntary contributions to your own super can boost your savings and lower your tax. 

Pre-tax contributions, also known as concessional contributions, include salary sacrifice and personal deductible contributions.  They reduce your taxable income and are generally taxed at a maximum of 15%^ in your super fund. 

Know how super contribution caps work to maximise your tax benefits. Concessional or pre-tax contributions are capped at $30,000 in 2024-25, including compulsory employer payments.  

Non-concessional (after-tax) contributions are capped at $120,000, but depending on your age and total superannuation balance, you may be able to bring forward up to two years of future non-concessional caps into the current year to make non-concessional contributions of up to $360,000.  

To claim a tax deduction for an eligible voluntary contribution you have made, you must: lodge a valid notice of intent (NOI) form with your super fund before you lodge your tax return – or by 30 June 2026; receive written acknowledgement from your fund; and claim the amount in your tax return. 

Missing these steps means your contribution won’t be claimed as a tax deduction and instead will count towards your non-concessional (after-tax) contributions cap this financial year. 

Check the ATO website for rules affecting eligibility. 

If you haven’t used your annual concessional cap in the last five financial years, you may be able to carry-forward the unused amounts to the current year to make concessional contributions above $30,000^^.  

The carry-forward rule helps those who spent time out of the workforce, or worked part-time, to ‘catch up’ on super.   

To use carry forward amounts your total superannuation balance must be less than $500,000 at the end of the previous tax year. Check your balances via ATO online services, accessible on MyGov.  

Couples can make after-tax contributions to each other’s super accounts. This evens up super balances and provides a tax offset to the contributing spouse. 

To get the full tax offset of $540, you must contribute at least $3,000 and your spouse must earn less than $37,000. The offset phases out at $40,000. 

You can also share pre-tax contributions with your spouse through ‘contribution splitting’, if certain conditions are met. 

Many Australians invest in high-interest bank accounts or term deposits. High interest savings accounts are the most common investment, held by 28% of Australians, followed by shares (27%) and term deposits (21%)#. 

However, consider making additional contributions to your super due to the tax-effective nature of the super system.  

Profits on investments outside super are taxed at your marginal tax rate, while super earnings are generally taxed at a maximum of 15%, allowing your money to compound faster.  

Once you reach 60 years of age, it can be accessed tax-free if you meet a condition of release, such as retiring from a job. Switching to an account-based pension after 60 means your earnings continue to be tax-free.  

Navigating super and tax can be complex. If you would like more help with your super tax strategies, book a free consultation with our guidance team.