As the end of the financial year approaches, many high-income earners are looking for strategic ways to reduce tax and grow long-term wealth. Superannuation remains one of the most powerful tools to do both—when used effectively.

For professionals, executives, and dual-income households with surplus cash flow, EOFY is the ideal time to get ahead. And with concessional cap rules, unused contribution opportunities, and non-concessional strategies available, now is the moment to act.

Here’s what you need to know to make the most of your super before 30 June 2025.

Why EOFY Super Contributions Matter

Whether you’re a salaried executive or business owner, topping up your super can deliver dual benefits: tax efficiency today and long-term compounding growth for retirement.

Super contributions are taxed at just 15%, which for many high-income Australians is significantly lower than their marginal tax rate. For individuals with incomes above $250,000, an additional 15% tax (Division 293 Tax) applies to concessional contributions—bringing the total tax rate on contributions to 30%.

However, even at this rate, the overall tax savings are still highly attractive. Personal marginal tax rates for higher-income earners can exceed 45%, meaning super contributions still represent a significant net tax advantage, plus the benefit of growing assets in a concessional environment.

But time is of the essence. Contributions must be received and processed by your super fund before 30 June. For peace of mind, plan to complete transfers by Monday 23 June to allow for delays.

Understand the Concessional Contribution Cap

The concessional (pre-tax) contribution cap for 2024–25 is $30,000. This includes:

• Employer super guarantee (currently 11.5%)
  
• Salary sacrifice contributions
  
• Personal deductible contributions
  

If you haven’t yet maximised this cap, you may be able to top it up with a lump sum contribution and claim a tax deduction.

Tip: Check your year-to-date contributions to avoid accidentally exceeding the cap, especially if your employer’s SG payments have increased or you’ve been salary sacrificing.

The 5-Year ‘Catch-Up’ Rule Could Supercharge Contributions

If your Total Super Balance (TSB) was below $500,000 at 30 June 2024, you may be eligible to take advantage of unused concessional contribution caps from the previous five financial years.

This could significantly increase the amount you can contribute this year—particularly useful for professionals who have experienced variable income, received bonuses, or sold assets.

An example to illustrate potential value:

For a salary of $180,000 and receiving Super Guarantee contributions, your carried forward unused concessional contribution amount could be around $41,600. Adding the current year’s $9,300 of further capacity (based on $30,000 cap minus SG), you may be able to contribute approximately $50,900 to super.
This not only reduces your personal income tax significantly but also enhances retirement savings within a tax-effective environment.

Non-Concessional Contributions (and the Bring-Forward Rule)

If you’ve received an inheritance, sold an asset, or have significant after-tax cash available, consider non-concessional contributions.

The current annual cap is $120,000 per person. Using the bring-forward rule, you may be able to contribute up to $360,000 in one year.

However, this strategy is subject to your Total Super Balance:

• If your TSB is over $1.9 million, you may be ineligible.
  
• If your TSB is between $1.66m and $1.9m, you may have limited access to the full bring-forward amount.
  

It’s essential to seek advice to ensure you don’t trigger excess contributions and unnecessary tax.

Mistakes to Avoid (and How to Get It Right)

EOFY is a high-activity period for financial institutions—and mistakes can be costly. Common pitfalls include:

• Leaving contributions too late (resulting in them being processed in the next financial year)
  
• Exceeding your caps unknowingly due to employer contributions
  
• Missing out on carry-forward opportunities because of TSB miscalculations
  

Be cautious of scams and fraud attempts. EOFY is a peak period for financial cybercrime. Always verify bank details via phone before transferring money to new accounts.

Start Planning Now—Not in June

Strategic super contributions can have a meaningful impact on your long-term wealth and reduce tax liabilities in the short term. But the opportunity to act closes quickly.

At Lighthouse Financial Group, we work with high-income professionals, business owners, and time-poor couples to coordinate every aspect of their financial strategy—from super to insurance, investments, and estate planning.

Want to Maximise Your Super Before June 30?

We can help you assess your position, explore your options, and implement a contribution strategy tailored to your circumstances.

📞 Contact Lighthouse Financial Group today to discuss your EOFY 2025 strategy.

Lighthouse Financial Group Pty Ltd, Authorised Representative 000287794 ABN 221 13 759 952 is a corporate authorised representative of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357 306. The information contained within this article does not consider your personal circumstances and is of a general nature only. You should not act on it without first obtaining professional financial advice specific to your circumstances.