Boost your super this EOFY
The end of the financial year is just around the corner. Topping up your super with a concessional contribution before 30 June can be a great way to boost your super savings. It could also mean paying less tax, depending on your circumstances.
What are concessional contributions?
When a contribution is made to your super from:
- your pre-tax income, or
- your after-tax money, if you tell your fund you intend to claim the contribution as a tax deduction
this contribution is usually taxed at just 15%1. They are known as ‘concessional’ contributions because for most people this is less than their marginal rate of tax, which may be up to 47% (including the Medicare Levy).
Concessional contribution cap
Each financial year, however, the government limits how much money can be put into your super at this concessional (or lower) tax rate. This is the ‘concessional contribution cap’ and for this financial year it’s $30,000.
Importantly, while the concessional contribution cap this financial year is $30,000, if you haven’t reached your concessional contributions cap in the past five years, you may be able to add more under the carry-forward rule.
Claiming a tax deduction
If you add after-tax money to your super – say from your pay or your bank account into your super – it's known as a voluntary or personal super contribution.
If you choose to claim voluntary or personal super contributions, the 15% tax rate for concessional contributions would apply instead of your marginal tax rate.
Keep in mind you can only claim for the amount you contribute up to the concessional contributions cap, which also includes all other pre-tax contributions, including:
- what your employer contributes on your behalf
- any salary sacrifice arrangements you set up
- any employer paid insurance premiums, and
- if you have more than one super account, any concessional contributions made to that account.
Case study:
Rebecca earns $90,000 per year. After considering her personal financial circumstances and speaking with her financial adviser, she decides to contribute $10,000 into her super from her bank account. This case study assumes Rebecca has no other income or tax deductions. Here’s how much Rebecca could save:
| No personal contribution | After-tax contribution | |
|---|---|---|
| Income | $90,000 | $90,000 |
| Personal super contribution | Nil | ($10,000) |
| Taxable income | $90,000 | $80,000 |
| Tax payable (including 2% Medicare Levy) | $19,588 | $16,388 |
| Tax and Medicare Levy saving | $3,200 | |
| 15% tax on super contribution | ($1,500) | |
| Net tax saving | $1,700 |
This case study is just an illustration and the member we’ve featured isn’t real. Sometimes we round up figures to help you understand the example more clearly. We recommend speaking to a financial adviser about your own circumstances.
Four steps to make the most of your concessional contribution cap
Australian Retirement Trust is not a tax agent, and we recommend you consider obtaining your own financial and/or tax advice before you make a decision.
1. Find out how much super you have added
Log in to member online or the app to see how much money has gone into your super account so far this year. If you have more than one super fund, you can log in to your mygov account to see your total contributions.
Don’t forget to include any contributions your employer will still make this financial year - but remember a contribution needs to be in your account by 30 June 2025 to count.
2. Consider making a personal contribution
If it’s right for you, contribute an amount from your bank account to your super. To find out how, visit our website here.
Please keep in mind that different contribution methods have different processing times. So that we can make sure it is in your super account before 30 June 2025 you should make your contribution as early as possible, and before Monday 23 June 2025. We cannot guarantee any contributions made after this date will be in your super account by 30 June 2025.
Any contribution received in your account on or after 1 July 2025 will be allocated to the 2025/26 financial year.
3. Lodge a ‘Notice of intent to claim’
Let us know you would like to claim a tax deduction for the amount you have contributed by completing a ‘notice of intent to claim’. You can do this via Member Online or via the ATO form.
Once we have processed your request, we will send you confirmation that your specified amount has been reclassified as a concessional contribution with 15% tax withheld.
Importantly, you must do this – and receive confirmation from us – before you lodge your tax return or 30 June 2026, whichever comes first.
4. Complete your tax return
Claim the deduction when lodging your tax return in your usual manner, and the ATO will do the rest.
1. If your income, plus before-tax contributions, are over $250,000 per year, some or all of your contributions will be taxed at 30%. If you haven’t provided your super fund your tax file number (TFN), the super tax rate may be higher.