Superannuation offers generous concessions for accumulating wealth, but to truly maximise these opportunities, it's essential to understand the different ways you can add to your superannuation benefits.
Let’s break it down.
1. Concessional Contributions
These are contributions made by others on your behalf (like your employer), or ones you make yourself and claim as a tax deduction. Common examples include:
Employer contributions (compulsory or salary sacrifice)
Personal contributions you claim as a tax deduction
The 2026 financial year cap is $30,000. This cap applies to everyone, regardless of how much you have already accumulated in super.
2. Non-Concessional Contributions
These are voluntary contributions made from your own money without claiming a tax deduction. Spouse contributions also fall into this category.
The 2026 financial year cap is $120,000. If your super balance is $2 million or more at the start of the financial year, you are not eligible to make non-concessional contributions.
Can You Catch Up on Missed Contributions?
Sure can, well at least for concessional contributions. If you haven’t used your full cap in previous years, you may be able to carry forward the unused portion for up to five years.
Who’s Eligible?
To use the catch-up rules, your total super balance must be less than $500,000 at 30 June of the previous financial year.
Example: Mark’s Catch-Up Opportunity
Mark is 55, his superannuation balance at 30 June 2025 is $450,000 and his employer contributions have been below the cap for several years. Here’s a snapshot:
2.Salary Sacrifice Strategy - If Mark wants to lower his taxable income, he could ask his employer to make extra salary sacrifice contributions. For example, $20,000 in salary sacrifice plus $14,000 in employer contributions would normally exceed the $30,000 cap, but the additional $4,000 beyond the annual cap would be applied to his 2020/21 unused cap.
Important Notes
$500,000 Balance Test: Your super must be under $500,000 at 30 June of the previous year.
Five-Year Limit: Unused cap amounts expire after five years. For example, Mark must use his 2020/21 unused cap by 2025/26.
Use Current Year First: You must use the current year’s cap before accessing unused amounts.
All Funds Count: You can’t split your super across multiple funds to stay under the $500,000 threshold.
Therefore, Mark satisfies the eligibility requirements and in 2025/26, Mark could contribute up to $75,000 extra (the total of his unused caps), in addition to his employer’s regular contributions.
How could Mark use this?
Where Mark has taxable income that could benefit from a further superannuation contribution, he may access his prior unused caps by making contributions in excess of the current year cap. Practically this could be:
1.To offset a Capital Gain - Mark sold some shares and made a sizeable capital gain. To reduce his tax, he could contribute up to $75,000 to super and claim a tax deduction. This would count as a concessional contribution even though it exceeds the annual cap.
Over 67? You’ll need to meet the “work test” (40 hours of paid work in 30 days) to claim a deduction for personal contributions. Employer contributions don’t require this.
After 75: Only compulsory employer award or super guarantee contributions are allowedvoluntary contributions are no longer permitted.
What About Non-Concessional Contributions?
These don’t have catch-up rules. However, some people can “bring forward” future caps. For example, Mark could contribute $360,000 in 2025/26 and use his caps for three years at once, if eligible.
Want to know if you’re eligible to make catchup concessional contributions or a nonconcessional contribution? Reach out to our super team - we’re here to help.
SMSF's remain a popular choice for greater control over superannuation savings
The latest data from the ATO's June 2025 SMSF statistical report reveals continued growth and evolving trends in the selfmanaged super fund (SMSF) sector.
Population Growth
As at 30 June 2025, there were 653,062 SMSFs in existence, with a total of 1,203,127 members. During the year, 41,980 new SMSFs were established, while 3,531 were wound up, resulting in a net increase of 38,449 funds.
Asset Allocation Trends
SMSFs continue to favour listed shares as their primary investment vehicle. As of June 2025, the largest asset class was Total Australian and overseas assets, with holdings totalling $1.05 trillion. This reflects ongoing confidence in equity markets among trustees.
Member Demographics
The most common age group among SMSF members remains those approaching retirement, reinforcing the SMSF model’s appeal for individuals seeking greater control over their retirement savings.
Notably, members aged 35–44 now represent 12.2% of the SMSF population, highlighting a growing trend of younger individuals engaging with SMSFs earlier in their financial journey.
Fund Flows
In the 2023–24 financial year:
Member contributions totalled $19.9 billion
Employer contributions reached $6.3 billion
Benefit payments amounted to $57.7 billion
These figures highlight the strong inflows into SMSFs and the increasing number of members drawing down on their retirement savings.
Taking Charge of your retirement savings
SMSFs remain a robust and flexible option for retirement planning. Whether you're already managing an SMSF or considering starting one, having a clear and considered superannuation strategy is essential to ensuring success.
If you’d like to discuss your superannuation strategy or explore whether an SMSF is right for you, please get in touch with our team.
Division 296 Super Tax –Latest Developments
The Federal Government’s proposed Division 296 tax, an additional 15% tax on earnings for individuals with super balances above $3 million, has hit a political roadblock. The progression of the legislation has been paused, and according to the SMSF Association, it is increasingly unlikely the bill will proceed in its current form. Amendments are expected, with growing internal dissent within the Labor Party and concerns reportedly raised by the Prime Minister.
In response to this uncertainty, commentary from industry bodies, financial planners, and media outlets has intensified. Key concerns centre on the practicality, fairness, and long-term implications of the proposed tax. Below is a summary of the latest developments:
1.Calls for Delay or Overhaul - Initial calls for a delay have shifted toward expectations of a broader overhaul. The SMSF Association confirmed the government has paused the bill’s progression, and if reintroduced, it will likely be significantly amended. While it remains unclear whether the Treasurer will revise or abandon the tax, mounting internal pressure suggests change is imminent.
2. Unrealised Gains Under Fire - Taxing unrealised gains continues to draw criticism, particularly for those holding illiquid assets like property or private equity investments. Critics warn this could force investors to sell assets to meet these new tax liabilities.
3. Indexation Pressure - Industry voices argue the $3 million threshold should be indexed to inflation to prevent bracket creep capturing more Australians over time. SMSF Association CEO Peter Burgess has suggested indexation is a likely amendment, noting it could help secure broader support without impacting the government’s four-year revenue forecasts, if the first adjustment is delayed beyond that period.
4. Timing and Legislative Uncertainty -
Although the tax was originally scheduled to apply from 1 July 2025, with the first balance test on 30 June 2026, the government’s decision to pause the bill has introduced significant uncertainty. The SMSF Association has confirmed the legislation is unlikely to proceed in its original form, and any reintroduction will likely include substantial changes. This uncertainty makes it difficult for individuals and advisers to plan with confidence.
Time for Action ?
If your super balance is approaching or exceeds $3 million, now is the time to review your position and remain alert to changes, but avoid making any major structural changes until the law is settled, as premature action could create unexpected tax or unintended consequences.
We can assist with a review of your current situation to illustrate how this could likely impact your superannuation strategy and personal circumstances. Obtaining a greater understanding can improve decision making and abate concerns.
Welcome Back to Bec and Linh!
We’re delighted to welcome Bec and Linh back after their respective parental leaves.
Linh has returned on a part-time basis and is eager to assist with all things super from Monday to Wednesday each week, with her remaining time at home with her daughter Alison.
Bec having now transitioned herself and Henry into their new routines, is back with the Super Team Monday to Friday.
