End of Financial Year Preparation – 10 Steps to Consider

This check list includes some items that are worth considering as we come to the end of the 2024/25 tax year.

Please discuss with your Sterling Planners adviser before making any decisions….

1. For SMSF only – If this is a year of unusually high taxable income a double contribution strategy might be considered. This can allow an additional $30,000 to be contributed in June for allocation to the member account in July. Note that this is the cap for next year, which is the year in which its allocation will be treated. Be cautious, as this strategy will utilise all of next year’s contribution limit.
2. For SMSF only – If this is a year of unusually high taxable income a double contribution strategy might be considered. This can allow an additional $30,000 to be contributed in June for allocation to the member account in July. Note that this is the cap for next year, which is the year in which its allocation will be treated. Be cautious, as this strategy will utilise all of next year’s contribution limit.
3. Non-concessional contributions (NCC) can be made if you are under age 75 provided your total super balance at 30 June 2024 was under prescribed limits. Again, you can check your NCCs to date in your MYGOV account – talk to your adviser before making any contribution.
4. Consider the possibility of a recontribution strategy to lower the taxable portion of your account. Failure to do so could result in future claims by adult children being subject to avoidable death benefit tax. A withdrawal in June could lower the total super balance sufficient to allow a recontribution in July. Note that changes to pension accounts may trigger a change to the member’s assessment for government pensions and the health care card as grandfathering may be lost.
5. With similar considerations to those above, consider withdrawals from a member with a high balance and the recontribution of the amount to a spouse with a lower balance. As total super balances affect a number of eligibility provisions, and they are not averaged between spouses, this is an opportunity to equalise balances.
6. Consider spouse splitting for eligible spouses who can split 85% of the concessional contributions made last year, to their spouse this year. This includes concessional contributions that were made under the 5 year unused contribution provisions. Note that this does not affect contribution caps as it’s regarded as a rollover.
7. If you, from age 55, have sold an eligible dwelling and are still within the time frame (90 days of settlement) consider making a downsizer contribution of up to $300k each (including a delayed settlement period for the contribution to be made after 30 June if the resultant Total Super Balance increase will adversely affect NCC eligibility in 2026.
8. Consider making an after-tax contribution (non-concessional) of up to $1,000 into super if you qualify for the government co-contribution if you are on a low annual income.
9. Consider making a spouse contribution of $3,000 for a non-working or low-income spouse to qualify for up to a $540 tax refund.
10. You might take this opportunity to check for lost super