As 30 June approaches, many Australians start asking if there anything they can be doing to reduce tax before the financial year ends. For some, it is a quick check with their accountant. For others, it is a scramble through receipts, super statements and half-remembered advice from last year. But the best tax planning rarely comes from panic. It comes from understanding the opportunities available, and making deliberate choices that fit your life.
Superannuation remains one of the most tax-effective ways to build long-term wealth in Australia. Used well, it can reduce your tax bill, grow your retirement savings and help you create more freedom later in life. Used carelessly, it can create cashflow pressure, contribution cap issues or money being locked away when you may need it sooner.
For the 2025–26 financial year, the general concessional contributions cap is $30,000. From 1 July 2026, this cap increases to $32,500. The super guarantee rate for 2025–26 is 12%, and employer contributions count towards your concessional cap, so it is important to check what has already gone into super before adding more.
Here are six super strategies to consider before 30 June and a quick warning before you contribute – do not leave super contributions until the last minute. To count for the 2025–26 financial year, your contribution generally needs to be received by your super fund before 30 June, not simply transferred from your bank account on that date. Many super funds, platforms and clearing houses have earlier processing cut-off dates, particularly in the final week of June. Before making a contribution, check your fund’s deadline and allow several business days for processing. A good strategy can lose its value if the money arrives in the wrong financial year.
1. Salary sacrifice into super
Salary sacrificing is one of the simplest ways to build super while potentially reducing tax.
Instead of receiving all your income as take-home pay, you arrange with your employer to direct part of your pre-tax salary into super. These contributions are generally taxed inside super at 15%, rather than at your marginal tax rate. For many higher-income earners, that can create a meaningful tax saving.
The key is to plan carefully. Your concessional contributions include employer super guarantee contributions, salary sacrifice contributions and any personal contributions for which you claim a tax deduction. For 2025–26, the general concessional contributions cap is $30,000, unless you are eligible to use unused concessional cap amounts from previous years under the carry-forward rules.
Salary sacrifice usually needs to be arranged prospectively, before the income is earned. It is not something you can generally backdate at the end of June.
This strategy can work particularly well for professionals, executives and business owners with strong cashflow who want to turn today’s income into long-term financial security. But it should be balanced against your short-term goals. If you are saving for a home deposit, building a business buffer or funding school fees, locking extra money inside super may not be the right move.
2. Make a personal deductible super contribution
A personal deductible contribution can be a powerful end-of-year strategy.
Instead of setting up salary sacrifice through your employer, you contribute money from your bank account into super and then claim a tax deduction in your personal tax return. This can reduce taxable income while boosting retirement savings.
This strategy may suit people who receive bonuses, investment income, business income or irregular cashflow, where it is easier to decide closer to 30 June how much surplus cash is available.
There are a few important technical steps. The contribution must be received by your super fund before 30 June to count for that financial year. You also need to lodge a valid notice of intent to claim a deduction with your super fund and receive acknowledgement from the fund before claiming the deduction in your tax return.
Again, the $30,000 concessional cap applies for 2025–26, unless you can use carry-forward concessional contributions.
Higher-income earners should also consider Division 293 tax. If your income plus concessional contributions exceeds $250,000, an additional 15% tax may apply to some or all of your concessional contributions. This does not necessarily make the strategy ineffective, but it does mean the outcome should be modelled properly.
3. Use carry-forward concessional contributions
If you have not fully used your concessional contribution caps in previous years, you may be able to catch up.
Carry-forward concessional contributions allow eligible Australians to use unused concessional cap amounts from up to five previous financial years. To use this strategy in 2025–26, your total super balance must have been less than $500,000 on 30 June 2025.
This can be especially useful if you have had a year of unusually high income, such as a large bonus, capital gain, business profit or redundancy payment. It can also help people who took time out of the workforce, including parents returning from parental leave or people rebuilding after career changes.
For example, someone who has been focused on paying down their mortgage or funding young children’s costs may not have used their concessional caps in previous years. A stronger income year could create an opportunity to catch up, reduce taxable income and rebuild retirement savings.
The opportunity can be valuable, but the calculation must be precise. You need to know your unused cap amounts, current-year contributions and whether you meet the total super balance rule. Your myGov account linked to the ATO can help you check your available concessional cap space, though it is still wise to confirm recent contributions with your super fund before acting.
4. Split super contributions with your spouse
Contribution splitting lets you transfer part of your concessional contributions from the previous financial year to your spouse’s super account.
This does not reduce tax immediately in the same way as a deductible contribution, but it can be a smart long-term strategy for couples. Evening up super balances may help improve retirement flexibility, manage future balance caps and make better use of both partners’ super accounts over time.
Broadly, you may be able to split up to 85% of eligible taxed concessional contributions from the previous financial year, subject to the rules of your super fund and your spouse’s eligibility.
This strategy can be particularly valuable where one partner has taken time out of work to raise children, build a business, care for family or manage a major life transition. It is not just about tax. It is about fairness, flexibility and making sure both partners are building financial security.
5. Claim the government super co-contribution
The government super co-contribution is designed to help lower and middle-income earners boost retirement savings.
For 2025–26, if your total income is below $47,488 and you make an eligible after-tax super contribution, you may qualify for the maximum government co-contribution of $500. The benefit reduces as income rises and cuts out once income reaches $62,488.
To receive the maximum co-contribution, you generally need to make a $1,000 after-tax personal contribution and meet the eligibility rules. These include the income test and having at least 10% of your total income from employment or carrying on a business.
This strategy will not suit everyone, especially higher-income earners. But for eligible family members, including adult children, younger workers or a lower-income spouse, it can be a simple way to turn a personal contribution into extra super.
6. Make a spouse contribution and claim a tax offset
If your spouse earns a low income or has taken time out of paid work, you may be able to contribute to their super and receive a tax offset.
The maximum offset is $540, based on 18% of a $3,000 spouse contribution. The full offset is generally available where your spouse’s income is $37,000 or less, and it phases out once their income reaches $40,000.
This is a tax offset, not a tax deduction. That means it directly reduces the amount of tax you pay, rather than reducing your taxable income.
There are other eligibility rules to watch, including your spouse’s total super balance and non-concessional contribution cap position. Spouse contributions count towards the receiving spouse’s non-concessional contributions cap, so they should not be made without checking the details first.
For couples where one person has reduced work hours, taken parental leave or stepped back for family reasons, this can be a practical way to keep both partners moving forward.
Do not forget access rules
Super can be tax-effective, but it is not a normal savings account. In most cases, you cannot access super until you meet a condition of release, such as reaching preservation age and retiring, starting a transition-to-retirement income stream, or turning 65.
That is why every super strategy should be considered alongside your broader life plan. A tax deduction is useful, but not if it leaves you short of cash for goals that matter sooner, such as buying a home, managing debt, funding children’s education or protecting your family.
Before adding extra money to super, ask yourself:
- Will I need this money before retirement?
- Have I allowed enough cash for upcoming expenses?
- Am I still on track for other goals outside super?
- Have I checked my contribution caps?
- Have I confirmed my fund’s contribution cut-off date?
The smartest strategy is rarely the one that simply saves the most tax today. It is the one that supports the life you are building now and the freedom you want later.
Why advice matters before 30 June
The Australian super and tax systems are full of opportunity, but they are also full of detail. Contribution caps, timing rules, spouse eligibility, carry-forward amounts and tax notices all matter. A good accountant can help you understand your tax position. A good financial adviser can help you understand whether a tax strategy actually supports the life you are trying to build.
At Financial Spectrum, we are a privately owned, fee-for-service financial planning firm. We do not take commissions, and our advice is designed around your goals, not a product catalogue. Our role is to help you make smart financial decisions with clarity and confidence, whether you are building wealth, preparing for retirement or trying to make the most of a high-income year.
Before making extra super contributions, check your contribution history, confirm your available cap space and consider how much cash you need outside super.
If you want clarity before 30 June, speak with a qualified adviser or accountant as early as possible. End-of-financial-year planning works best when there is enough time to make thoughtful decisions, not rushed ones.
Frequently asked questions
What is the concessional super contribution cap for 2025–26?
The general concessional contributions cap for 2025–26 is $30,000. From 1 July 2026, it increases to $32,500. Concessional contributions include employer super guarantee, salary sacrifice and personal deductible contributions.
Can I claim a tax deduction for personal super contributions?
Yes, you can claim a tax deduction for personal super contributions if you are eligible and follow the correct process. You must make the contribution to your super fund, lodge a valid notice of intent to claim a deduction and receive acknowledgement from the fund before claiming the deduction in your tax return.
What happens if I exceed my concessional contributions cap?
Exceeding your concessional contributions cap can create additional tax consequences and administrative complexity. Excess concessional contributions are generally included in your assessable income and taxed at your marginal tax rate, with a 15% tax offset to account for contributions tax already paid by the fund.
Who is eligible for the government super co-contribution in 2025–26?
For 2025–26, the maximum co-contribution of $500 may be available if your income is below $47,488 and you make an eligible after-tax contribution. A reduced amount may be available up to the upper income threshold of $62,488.
How much is the spouse super contribution tax offset?
The maximum spouse contribution tax offset is $540. It is based on 18% of eligible spouse contributions up to $3,000. The full offset generally applies where your spouse’s income is $37,000 or less and phases out at $40,000.
Should I use super to reduce tax before 30 June?
It depends on your income, cashflow, contribution cap space, age, retirement plans and short-term goals. Super can be very tax-effective, but the money is generally locked away until you meet a condition of release. A tailored strategy is best.
Rebecca is passionate about promoting the positive impact of quality financial advice on personal wellbeing. Read her full bio here.
