Your end‑of‑financial year to‑do list: a guide for retirees

The EOFY is a good time to re-evaluate how your money’s performing, and how it’s invested, as well as your risk tolerance. 

You may wish to increase or review your minimum pension drawdown amount, depending on your circumstances. 

You can use our retirement calculator to get a sense of how well your savings could last, in conjunction with other income sources from investments, part-time work or the Age Pension.

Don’t forget: super funds have EOFY deadlines for withdrawals, transfers or contributions that are well before 30 June. Check our EOFY cut-off dates. 

Tip: If the balance of your account-based pension has fallen due to recent volatility, consider re-reporting it to Centrelink as it may allow you to receive more pension. To view your Centrelink statement online, login to your account.

A few key numbers underpin how much money you can withdraw tax‑effectively in retirement, among them:

• Transfer balance cap: the limit on how much super you can transfer to start a tax free retirement income stream, such as an account based pension.
  • The general transfer balance cap is $2 million for 2025-26.
  • It will increase to $2.1 million on 1 July 2026.
  • Your personal TBC depends on when you retired and how much of your cap you have already used.
• Total super balance: All your superannuation interests as at 30 June (including retirement income stream accounts and super accumulation accounts, if you still have any). It determines when and how certain rules and entitlements apply to you, such as the Division 296 tax on those with super balances above $3 million. You can look up your Total Superannuation Balance on ATO online services via your MyGov account.
• Minimum pension drawdown: the minimum amount you must withdraw each year from an account‑based pension, It is based on your age and account balance when you started the pension or on 30 June each year. It ranges from 4% (if you’re under 65) to 14% (if you’re over 95).

Not all retirement income is taxed the same way. It’s important to know the difference to understand your taxable income for the year.

• Account‑based pensions: If you're 60 the payments you receive from an account-based pension are tax free. However, Centrelink will treat your account balance as an assessable asset and will apply the deeming rules (unless grandfathering provisions apply) for income test purposes.
• Super in accumulation phase: Withdrawals from age 60 are generally tax-free but earnings within the fund are taxed at rates of up to 15%.
• Age Pension: It may be tax‑free if it’s your only source of income but in general it’s taxable, based on your marginal tax rate. 
• Investments: Interest, dividends and capital gains are taxable; franking credits may reduce tax or create a refund.

Read more about taxation in retirement. 

Retirees routinely miss out on about $3 billion a year in money that could be used to pay essential living expenses – simply by not applying for it, according to research from CFS partner Retirement Essentials¹. 

There are a range of government benefits available to retirees. Some of these come and go, while others are more lasting. Some end or start at the end of the financial year.

• Check past and current Federal Budget announcements for relevant Medicare, cost of living relief and tax changes. 
• Be aware of the major entitlement types – including the Age Pension, which many retirees don’t realise they’re eligible for. 

Check MyGov for more information or check your Age Pension eligibility.

Offsets, such as the seniors and pensioners tax offset (SAPTO) and the spouse offset, may help reduce your tax in retirement. 

SAPTO: If you have reached Age Pension age or claim a government allowance, you may be eligible for the SAPTO, which allows you to earn more income but pay less tax and, in some cases, may reduce your tax liability to zero. 

• For singles, the maximum tax offset you are eligible to receive is $2,230. This reduces by 12.5 cents for every dollar your rebate income exceeds $34,919, and phases out completely at $52,759.

Spouse contribution tax offset: If one member of a couple is retired, but the other isn’t, it may be worth contributing to the younger spouse’s super. 

• The maximum spouse amount available is $540 per financial year and is based on the receiving spouse’s income and the amount contributed.

There are certain eligibility conditions. For detailed information on offsets, visit the Australian Tax Office website.

If you sold, or are considering selling, shares, property or other assets this financial year, capital gains tax may apply.

The timing of asset sales matters, so EOFY is a good time to review your strategy.

Capital gains are added to your taxable income. Under the rules for 2025-26, assets held for more than 12 months may qualify for the 50% CGT discount, although the Federal government has flagged possible changes to this rule.

Tax rules are complex and liable to change, so it’s always best to talk to an expert.