Your superannuation is one of the most effective tools for building long-term wealth and securing a comfortable retirement. As we enter 2025, it’s essential to revisit your super contribution strategy to ensure you’re making the most of this tax-effective savings vehicle. Here’s how you can optimise your contributions and set yourself up for a stronger financial future.

1. Maximise Concessional Contributions

Concessional (pre-tax) contributions are a tax-efficient way to boost your super. These include employer contributions, salary sacrifice, and personal contributions claimed as a tax deduction.

Annual Limit: For 2025, the concessional contribution is now at $30,000. Contributions above this cap may attract additional tax, so plan carefully.
·Tax Benefits: Concessional contributions are taxed at 15%, which is generally lower than your marginal tax rate.

Example: If your marginal tax rate is 37%, salary sacrificing an extra $10,000 into super could save you $2,200 in tax while growing your retirement savings.

2. Use Carry-Forward Contributions

If you didn’t fully utilise your concessional cap in previous years, you can carry forward unused amounts from up to five years (if your total super balance is below $500,000 at 30 June 2024).

Ideal for High Earners: This strategy is particularly effective if you’ve had a financial windfall or bonus.
How It Works: Check your available carry-forward amounts through your MyGov account and make additional contributions to reduce your taxable income.

3. Make Non-Concessional Contributions

Non-concessional (after-tax) contributions are another way to grow your super, especially if you’ve reached your concessional cap.

Annual Limit: The cap for non-concessional contributions is $120,000 for 2025.
Bring-Forward Rule: If you’re under 75, you may bring forward up to three years’ worth of contributions (up to $360,000), subject to your total super balance.

Example: If you’ve received an inheritance or sold an asset, non-concessional contributions allow you to deposit this money into your super tax-free.

4. Consider Spouse Contributions

If your partner earns a low income or is not working, you can make contributions to their super and potentially receive a tax offset.

Tax Offset: Receive up to $540 if you contribute $3,000 to your spouse’s super and their income is less than $37,000.
Benefit: This strategy helps grow your combined retirement savings while reducing your tax liability.

5. Take Advantage of Government Co-Contributions

If your income is below certain thresholds, you may qualify for a government co-contribution when you make personal after-tax contributions to your super.

Thresholds: For the 2025 financial year, you could receive up to $500 if your income is below $43,445 and make a personal contribution of $1,000.
Partial Contributions: Those earning up to $58,445 may still qualify for a reduced co-contribution.

Tip: This is a great strategy for retirees working part-time or Empowered Women transitioning to financial independence.

6. Review Your Investment Strategy

Your contribution strategy should align with your overall super investment approach:

Growth Stage: Younger individuals with a longer time horizon might consider higher-growth investments for potentially greater returns.
Preservation Stage: Pre-retirees may shift to conservative or balanced options to protect their savings as they approach retirement.
Ethical Investing: If you prioritise sustainable investing, review your fund options to ensure they align with your values.

7. Monitor Contribution Caps and Rules

Exceeding contribution caps can result in penalties and additional tax. Stay informed about:

Your Total Super Balance (TSB): If your TSB exceeds $1.9 million as of 1 July 2024, you may be restricted from making further non-concessional contributions.
Indexation Updates: Keep an eye on changes to contribution limits or caps as they are indexed.

8. Work with Us to Optimise Your Strategy

Superannuation is a critical part of your financial plan, and it requires a tailored approach to ensure it aligns with your broader goals. At Your Vision Financial Solutions:

We monitor changes to super rules and ensure your strategy is always up to date.
We take a proactive approach to help you maximise your contributions and tax benefits.
We align your super strategy with your long-term vision for retirement.

Secure Your Financial Future in 2025

Maximising your super contributions is about more than just saving for retirement—it’s about creating the lifestyle and legacy you envision. With our expert guidance, you can make informed decisions and confidently build a stronger financial future.

If you’d like to review your super strategy for 2025 or discuss these opportunities in more detail, contact us today. Together, we’ll ensure your super works as hard as you do.

Your Vision Financial Solutions Pty Ltd ABN 64 650 296 478 and its Advisers are Authorised Representatives of Fortnum Private Wealth Ltd ABN 54 139 889 535 AFSL 357306. This article has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this article you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.

Making the Most of Your Super: Contribution Strategies for 2025