Tax-effective strategies to manage superannuation in FY 2025/26

As we enter the 2025/26 financial year, superannuation remains one of the most powerful and tax-effective ways to build long-term wealth in Australia. The start of a new tax year is a great time to review your strategy and ensure you’re making the most of the opportunities available.

Whether you're just starting to think about retirement or already transitioning into it, the right superannuation strategies can make a significant difference. Here, we talk to Apt’s Compliance Associate Connie Yi on the strategies to consider in the year ahead.

Before diving into super strategies, Connie acknowledges that current cost-of-living pressures may make some reticent to make additional contributions. But she says it’s wise to put a plan in place now and work towards it.

“It must be a cash flow decision. If you have surplus but are unsure whether your costs will rise late in the year, consider holding it in a high-interest savings account and moving it to super when you know your tax position.

“You don’t have to commit the funds today, but it’s important to understand your anticipated tax bracket and have a strategy now to put yourself in the best possible position come 30 June 2026.”

Maximise concessional contributions

The carry-forward rule allows you to use unused portions of your concessional contributions cap for up to five previous years, provided your total super balance is under $500,000 on 30 June of the previous financial year.

In tax year 2024/25, the concessional cap increased from $27,500 to $30,000. If you’ve not been reaching your cap, you should consider making use of the carry-forward rule, advises Connie. She adds that it can be particularly helpful if you have had a career break.

“If you've had a break from work, irregular income or simply weren't in a financial position to contribute earlier, this strategy allows you to catch up. It’s also ideal for those expecting a one-off high-income year (e.g. from a bonus, asset sale or redundancy) who want to reduce their tax liability. If you haven’t been making or receiving super contributions, it could equal up to $137,500 (i.e. utilising the unused caps accumulated since financial year 2020/21), taxed at 15%, lower than most people’s marginal tax rate,” she explains.

“If you have the financial capacity, consider topping up your super with personal contributions and claim a tax deduction. Maximising your concessional contributions not only helps you grow your retirement savings but can also significantly reduce your taxable income.”

Take advantage of the non-concessional cap (NCC)

The NCC stays at $120,000 for 2025/26, with the bring-forward rule allowing up to $360,000 over three years for eligible individuals under age 75. These are contributions made from after-tax income and are not taxed within the fund as tax has already been paid.

Connie highlights that this strategy can be particularly useful if you’ve recently received a windfall, such as an inheritance or a property sale, and want to move more funds into the tax-friendly super environment.

“If you're under 75 years old, you may be eligible to bring forward up to three years' worth of NCCs, provided your total super balance is under $1.76 million as of 30 June 2025. It can be a useful tool when you have received a windfall, sold an asset or been the beneficiary of an inheritance. It can also be useful as you’re approaching retirement to boost super before you hit contribution limits,” she says.

Spouse contributions and super splitting

If your partner earns a low or no income, making a spouse contribution may entitle you to a tax offset of up to $540. Alternatively, you can split up to 85% of your concessional contributions with your spouse to help equalise balances and manage transfer balance cap issues later.

“This is especially important for couples where one spouse is approaching the $2 million transfer balance cap and the other is well below it,” Connie says.

Retiring soon? Consider a transition to retirement (TTR) strategy

For those aged 60 and over, a TTR strategy allows you to reduce your working hours while supplementing your income through a tax-effective pension.

“Even if you’re not planning to retire soon, a well-managed TTR strategy with salary sacrifice or personal deductible contribution can lower your overall tax bill while preserving your lifestyle and easing the emotional transition to retirement,” Connie explains.

Downsizer contributions – still going strong

If you’re aged 55 or over, you can contribute up to $300,000 from the sale of your family home into super without impacting your non-concessional cap.

“This strategy is excellent for those looking to boost their super late in life,” Connie highlights.

Put yourself in the best possible position

“As always, it’s essential to tailor your approach to your specific circumstances, goals and tax position. Working with your Apt adviser can ensure you're making the most of your super – not just for tax time, but for a more secure retirement,” Connie concludes.

Want to be prepared for the tax year ahead? Reach out to your Apt adviser to start planning today.

General Advice warning

The information provided in this blog does not constitute financial product advice. The information is of a general nature only and does not take into account your individual objectives, financial situation or needs. It should not be used, relied upon, or treated as a substitute for specific professional advice. Apt Wealth Partners (AFSL and ACL 436121 ABN 49 159 583 847) and Apt Wealth Home Loans (powered by Smartline ACL 385325) recommends that you obtain professional advice before making any decision in relation to your particular requirements or circumstances.