From your trusted SMSF Accountants
As we approach 30 June 2025, it’s the ideal time to review your self-managed super fund (SMSF) and make sure you’ve made the most of your contribution opportunities. Whether you manage your fund yourself or work with a professional SMSF Accountant, understanding the rules and timing can help you maximise tax benefits and avoid mistakes.
In this article, we break down what SMSF trustees and members need to know before the end of the financial year, using straightforward language and practical guidance.
Your 30 June 2024 Balance Drives Everything
Your Total Superannuation Balance (TSB) at 30 June 2024 affects what you can do in the 2024–25 financial year. It determines your eligibility for several important contribution strategies.
Here’s what your TSB can impact:
- If your TSB is under $1.9 million, you can still make non-concessional contributions (NCCs).
- If it’s under $500,000, you can use any unused concessional contributions (CCs) from the past five years.
- If it’s under $300,000, you may qualify for a one-off exemption from the work test.
- If it’s under $1.66 million, you can contribute up to $360,000 using the bring-forward rule.
- If your TSB is between $1.66 and $1.9 million, your bring-forward cap is lower.
Because contributions made before 30 June 2025 affect your TSB for the next financial year, it’s important to plan for this year and the next at the same time.
Timing Matters – When Is a Contribution Counted?
A contribution only counts in the year your SMSF actually receives it. This sounds simple, but it’s easy to get wrong if you’re not careful.
Here’s how contributions are counted:
- Electronic transfer: When the money arrives in the SMSF’s bank account.
- Cheque: When it’s received and cleared.
- Small Business Super Clearing House (SBSCH): When accepted by the clearing house.
- Other clearing houses: Only when the SMSF receives the funds.
To avoid errors, make all contributions well before 30 June, especially if they are electronic or go through a clearing house. This is something your SMSF Accounting Service provider can help manage effectively.
Last Chance to Use Unused Concessional Caps from 2019–20
If your TSB is below $500,000 on 30 June 2024, you can carry forward any unused concessional cap amounts from up to five years ago. But the amount from 2019–20 will expire after 30 June 2025 if not used.
You can combine carried-forward amounts with this year’s $30,000 concessional cap. If you haven’t used any of your concessional cap in the last five years, you could contribute up to $162,500 in 2024–25. This is a valuable opportunity that shouldn’t be missed.
Claiming a Tax Deduction for Personal Contributions
If you’re aged between 67 and 74, you can still claim a tax deduction for personal contributions made in 2024–25—if you meet the work test (working at least 40 hours in 30 consecutive days during the year), or qualify for the one-time work test exemption (TSB under $300,000).
To claim the deduction, you must:
- Lodge a Notice of Intent to claim a deduction with your SMSF trustee.
- Get written confirmation from the trustee before you lodge your personal tax return or withdraw funds.
If you start a pension, withdraw all your super, or roll over your account before submitting the notice, you may lose the ability to claim the deduction.
Watch for Division 293 Tax
If your total income and concessional contributions add up to more than $250,000, you may have to pay an extra 15% tax on your concessional contributions. This is known as Division 293 tax.
Events that could push your income over this threshold include:
- Large capital gains
- Bonuses or redundancy payments
- Taxable components of super death benefits paid to non-dependents
It’s important to monitor your total income and contributions during the year. An SMSF Accountant can help you manage this, particularly if you’re making catch-up contributions or have variable income.
Should You Trigger the Bring-Forward Rule?
If you’re under 75 on 1 July 2024, you may be eligible to bring forward up to three years of non-concessional contributions.
How much you can contribute depends on your TSB:
- Under $1.66 million: Up to $360,000
- $1.66 to $1.78 million: Up to $240,000
- $1.78 to $1.9 million: Up to $120,000
- $1.9 million or more: Not eligible
If you’re turning 75 during the year, your SMSF must receive the contribution within 28 days after the end of the month in which you turn 75.
Equalising Super Balances Between Spouses
Many couples have unequal super balances. There are benefits to evening these out, including:
- Maximising both partners’ transfer balance caps
- Improving estate planning outcomes
- Reducing exposure to possible future taxes, such as the proposed Division 296 tax on balances above $3 million
Three strategies can help:
- Spouse contributions – contribute to your partner’s super if they’re eligible. This may also give you a tax offset.
- Contribution splitting – move up to 85% of your concessional contributions to your spouse.
- Re-contribution strategy – withdraw and re-contribute funds to change the tax components of your balance.
An SMSF Accounting Services provider can help structure these strategies over multiple years.
EOFY Checklist for SMSF Trustees
Before 30 June:
- Confirm each member’s TSB at 30 June 2024
- Decide whether to use bring-forward rules or carry-forward contributions
- Make contributions early and allow time for clearing
- Submit all Notices of Intent well before pension start dates or withdrawals
- Review income levels for Division 293 tax
- Discuss spouse and re-contribution strategies with your SMSF adviser
Final Thoughts
EOFY is one of the most important times of the year for SMSF planning. With the right advice and action, you can make contributions effectively, reduce tax, and stay on top of your SMSF compliance requirements.
Working with your SMSF Accountant ensures that your SMSF stays compliant and tax-effective. Whether it’s managing your SMSF Annual Return, helping with contribution strategies, or guiding you through SMSF Tax Return Services, the right support makes all the difference.
If you’re unsure how these rules apply to your fund, speak with your SMSF specialist before the financial year ends. A well-timed contribution or early paperwork can save thousands.
