Superannuation & Other Tax Planning Opportunities for EOFY 2026

Superannuation continues to be one of the most effective ways to build long-term wealth while also reducing taxable income. With the end of the financial year approaching, now is the ideal time to review your superannuation strategies and ensure you are making the most of the opportunities available before 30 June 2026.

For the 2025/26 financial year, the concessional (tax-deductible) contribution cap is $30,000 per person, regardless of age.

Concessional contributions include:

• Employer Super Guarantee contributions
• Salary sacrifice contributions
• Personal tax-deductible super contributions

If you have not fully used your concessional cap during the year, making additional deductible contributions before 30 June may help reduce your taxable income while increasing your retirement savings.

One of the key advantages of superannuation is the concessional tax treatment. Super contributions are generally taxed at only 15% within the fund (or up to 30% for higher-income earners), which is often significantly lower than individual marginal tax rates.

This strategy can be particularly valuable for:

• Self-employed individuals
• Property investors and passive income earners
• Employees looking to build retirement savings tax-effectively

If your total super balance was below $500,000 at 30 June 2025, you may be eligible to use unused concessional contribution caps from the previous five financial years.

Unused cap amounts can accumulate for up to five years before expiring.

This strategy may be especially beneficial for individuals who:

• Have fluctuating income
• Have received a one-off capital gain
• Expect higher taxable income in a particular year

Using carry-forward contributions can provide a significant tax deduction opportunity while boosting retirement savings.

Eligible individuals may also consider making non-concessional (after-tax) super contributions.

Contribution limits for 2025/26 include:

• Up to $120,000 annually; or
• Up to $360,000 under the bring-forward rule over three years

These contributions can be an effective way to grow retirement savings in a tax-effective environment, particularly for individuals approaching retirement.

As eligibility rules can be complex, professional advice is recommended before making large contributions.

Low and middle-income earners may qualify for a Government super co-contribution when making personal after-tax super contributions.

For the 2025/26 financial year:

• The maximum co-contribution available is $500
• Full entitlement generally applies where income is $44,500 or less
• Partial entitlements may apply for incomes up to $60,400

To receive the maximum benefit:

• At least $1,000 in non-concessional contributions must be made
• At least 10% of income must come from employment or business activities
• Your total super balance must remain below the applicable threshold
• You must be under age 71 on 30 June 2026

This can be a valuable way to boost retirement savings with additional government support.

If you have reached your preservation age but are not ready to fully retire, a Transition to Retirement (TTR) strategy may help you reduce working hours while supplementing your income from superannuation.

Under a TTR strategy, you may be able to:

• Continue working
• Continue making concessional contributions
• Draw an income stream from your super fund

Minimum pension withdrawals generally start at 4% of your account balance, with a maximum withdrawal limit of 10% annually.

• Under age 60: pension withdrawals are generally taxed at marginal tax rates, with a 15% tax offset often available
• Age 60 and over: pension withdrawals are generally tax-free

TTR strategies are commonly used to:

• Gradually reduce working hours
• Salary sacrifice into super while maintaining cash flow

Individuals who are:

• Aged 60 or over and retired; or
• Aged 65 or over, whether working or not,

may benefit from commencing an account-based pension.

Potential advantages include:

• Tax-free pension withdrawals
• Tax-free investment earnings within the pension phase, subject to transfer balance cap limits

Current minimum pension withdrawal rates are:

• Under 65: 4%
• Age 65–74: 5%
• Age 75–79: 6%
• Age 80–84: 7%

Unlike Transition to Retirement pensions, standard account-based pensions generally do not have a maximum annual withdrawal limit.

A Self-Managed Super Fund (SMSF) can provide greater flexibility and control over investment decisions and retirement planning strategies.

Potential benefits may include:

• Greater investment choice
• More tailored retirement planning
• Increased control over super assets

However, SMSFs also involve:

• Strict compliance obligations
• Ongoing administration responsibilities
• Trustee duties under superannuation law

An SMSF may suit individuals seeking more control over their superannuation, but it is not appropriate for everyone. Professional advice is strongly recommended before establishing an SMSF.

As part of your year-end planning, there are several important compliance matters to review before 30 June 2026.

If you use a vehicle for business or work purposes:

• Record your odometer reading on 30 June 2026
• Update or prepare a new logbook if your current logbook is more than five years old

A valid logbook must cover a continuous 12-week period and can support your business-use percentage for the entire financial year.

If you are drawing an account-based pension, ensure the minimum annual pension payment has been withdrawn before 30 June 2026.

Failing to meet the minimum withdrawal requirements may affect the tax treatment of your pension account.

Employer super contributions for the 2025/26 financial year are due by 28 July 2026.

However, to claim a tax deduction this financial year, the contribution must be received by the super fund before 30 June 2026.

Processing delays can occur, so it is important not to leave contributions until the final days of June.

Business owners who have borrowed funds from a private company should ensure that minimum principal and interest repayments are made before 30 June 2026.

Loans made during the year should either:

• Be fully repaid; or
• Be placed under a compliant Division 7A loan agreement before the company tax return due date

Failure to comply may result in the loan being treated as an unfranked dividend.

Trustees of discretionary trusts should ensure trust distribution resolutions are prepared and signed before 30 June 2026.

Without a valid resolution:

• Default beneficiaries may become entitled to trust income; or
• Undistributed income may be taxed at the highest marginal tax rate

Businesses should review and reconcile payroll records, including PAYG withholding obligations, before year-end.

Employers using Single Touch Payroll (STP) are generally no longer required to issue annual payment summaries once payroll has been finalised through STP.

The compulsory Superannuation Guarantee rate increased from 11.5% to 12% from 1 July 2025 and remains at 12% for the 2026/27 financial year.

Base rate entities with aggregated turnover below $50 million may continue to qualify for the 25% company tax rate, provided:

• Aggregated turnover remains below $50 million; and
• No more than 80% of assessable income is passive income

Planning ahead before 30 June can help maximise tax-saving opportunities, strengthen retirement savings, and ensure compliance obligations are met.

EOFY tax and superannuation planning should always be tailored to your individual circumstances. If you would like personalised advice, contact the team at AJ Buckingham & Associates to discuss strategies suited to your financial and business goals.