Key Takeaways
- Super Cap Indexation: Both the Transfer Balance Cap and the Total Super Balance Cap will increase to $2.0 million on 1 July 2025. This allows you to move more capital into tax-free retirement phase accounts.
- Final SGC Increase: The Super Guarantee Charge (SGC) rate rises to 12% for the 2025/26 financial year. This is the final planned increase in the current schedule and impacts employer contribution obligations.
- Contribution Limits: For the 2025/26 year, concessional contributions are capped at $30,000. Non-concessional limits stay at $120,000, with eligible individuals able to bring forward up to $360,000 over three years.
- Minimum Pension Deadlines: Retirees must ensure they meet their minimum pension drawdown requirements before 30 June. Failing to meet these limits can result in the loss of a fund's tax-exempt status.
- Tax Loss Harvesting: Reviewing your portfolio for capital losses before the end of the financial year can help offset capital gains made on other assets, effectively reducing your overall tax liability.
It is easy to become distracted by the current affairs occurring both domestically and overseas. From the upcoming federal election to Trump tariffs, the Ukraine/Russia war and so much more, there’s just too much to keep up with for any sane person.
With everything going on, it's important we try to maintain other, more 'normal' aspects of life. Things we can control, such as our end of financial year financial planning. What do you need to do to get your financial house in order before 30 June?
Here are some handy hints for you to consider over the next few months. Contact your adviser to chat about any of the following topics.
Investment, Property, and Insurance Management
Have you sold an investment asset this financial year? Ensure you have copies of your investment statements, including dividend statements. This is also a good time to review your investment strategy. Markets have been quite volatile recently, so there may be opportunities you can take advantage of, such as capital gains or losses.
If you own property, make sure you have your paperwork up to date, particularly if you can claim depreciation. Additionally, ensure your personal insurance, including life and income protection insurance, is in order. Has your personal situation changed? Talk to a Morgan's adviser about a portfolio administration service that will make next year’s paperwork and tax time simple.
Retirement and Superannuation Strategies
Are you thinking about retiring this year? Ensure you have your details to access your Super or other retirement income stream. Review your capital gains and losses for your investment and superannuation portfolios. Consider what superannuation strategies you have already made or intend to make prior to 30 June.
Talk to your financial adviser to ensure you understand what contribution limits apply to you. If you are already receiving a pension from your superannuation, make sure you meet your minimum pension requirements before 30 June to avoid significant penalties. Talk to your adviser to identify investment and superannuation strategies you can put in place before 30 June to help protect your retirement savings.
Understanding Superannuation Thresholds for 2025-2026
From 1 July 2025, the transfer balance cap will index from $1.9 million to $2.0 million, allowing individuals to transfer more into their retirement phase accounts. Similarly, the total super balance cap will index to $2.0 million from 30 June 2025.
Concessional contributions will remain at $30,000 per person per annum, while non-concessional contributions will stay at $120,000 per person per annum. There is an option to bring forward up to $360,000 over three years for eligible individuals, depending on their total super balance as of the previous 30 June. Additionally, the Super Guarantee Charge (SGC) rate will increase from 11.5% to 12% for the 2025/26 financial year, marking the final planned increase to the SGC rate. These changes provide opportunities to maximise your superannuation contributions and benefits, so it's important to plan accordingly and consult with your financial adviser.
Preparing Your Financial House for the New Year
Will you be ready? Don't let global issues distract you from the things you would normally focus on at this time of year. It's time to get back on track with your retirement planning. Feel free to contact your Morgans adviser to discuss your end of financial year planning.
Find an Adviser Today
Tax laws and superannuation thresholds change every year, making professional guidance essential for protecting your wealth. Our experts can help you navigate the 30 June deadline with confidence. Find a Morgans adviser today to get your financial house in order.
Frequently Asked Questions
What are the superannuation contribution limits for 2025-26?
For the 2025/26 financial year, the concessional contribution cap is $30,000. The non-concessional contribution cap is $120,000. If you are eligible, you may be able to use the bring-forward rule to contribute up to $360,000 in non-concessional contributions over a three-year period.
When does the Super Guarantee increase to 12%?
The Super Guarantee (SG) rate is scheduled to increase from 11.5% to 12% on 1 July 2025. This is the final planned increase in the current legislation. Employers must ensure they update their payroll systems to reflect this change for all salary and wages paid after this date.
What is the Transfer Balance Cap for 2025-2026?
The general Transfer Balance Cap is set to index to $2.0 million on 1 July 2025. This cap limits the total amount of superannuation that can be transferred into a tax-free retirement phase account. Your personal transfer balance cap may differ depending on when you first started receiving a pension.
What happens if I miss my minimum pension payment by 30 June?
If you fail to draw the minimum required pension amount by 30 June, your super fund may lose its tax-exempt status on earnings for that entire financial year. This can result in a 15% tax on earnings that would otherwise have been tax-free. It is a critical deadline for anyone in the retirement phase.
How does the $2.0 million Total Super Balance cap work?
The Total Super Balance (TSB) cap determines your eligibility for certain superannuation features, such as the bring-forward rule and the ability to make non-concessional contributions. From 30 June 2025, the TSB threshold indexes to $2.0 million, allowing more Australians to access these strategic contribution options.
