08/05/2026
$100,000-plus Tax Deduction? Three Superannuation Strategies to implement NOW before 1 July 2026 Rule Changes
As 30 June 2026 approaches, you can take advantage of superannuation strategies still available under current rules that are due to change on 1 July 2026. This is the final year to use some deduction-friendly tactics and with some well-timed contributions before end-of-financial-year (EOFY), you can strengthen your retirement savings and receive some EOFY tax benefits.
These strategies must be implemented before 30 June 2026 to ensure that your contributions are received before the superannuation funds close off for the year, so early- to mid-June is your cut-off.
Maximise Concessional (Tax-Deductible) Contributions
People who use their concessional (tax-deductible) superannuation contributions up to the annual cap and follow the catch-up rule whereby the unused portions of the annual caps from the past five financial years can be added together, could claim $100,000-plus in tax deductions. If you have a starting balance of no more than $500,000 total in your superannuation account, you can effectively claim a consequential tax deduction using this concessional contribution strategy.
Therefore, if your total super balance is below the relevant threshold and you have not fully used some or all your concessional annual caps from the past five years, you may be able to make a larger tax-deductible contribution this year.
Concessional contributions are generally taxed at 15% with your superannuation fund which is much lower than most personal marginal taxation rates.
If you contributed, for example, $10,000 in a year when the annual cap was $27,500, you would have $17,500 unused, giving you the opportunity to contribute more than the standard annual cap this year ($30,000) and thus claim a larger tax deduction.
Factors including age eligibility, work test criteria, and lodgement of notices of intent must be met for this strategy to be implemented successfully. However, it remains one of the most tax-effective strategies for retirement savings growth.
Make Non-Concessional (After-Tax) Contributions
Considering making superannuation contributions from after-tax income can make a powerful impact on long-term wealth building.
Currently, superannuation rules allow an individual to contribute up to $120,000 per annum of after-tax income, which will increase to $130,000 from 1 July 2026, and up to three future years’ worth of contributions can be made at one time under the bring-forward rule.
For couples, this can mean contributing, if structured correctly and eligibility criteria is met, over $1 million of after-tax income into their superannuation accounts.
Co-Contribution Schemes
For people earning below $62,488 gross per annum, and who meet the eligibility criteria, the Australian government contributes up to $500 on up to $1000 of non-concessional (after-tax) contributions made by an individual into a superannuation account.
Additionally, if your spouse earns below $40,000 gross per annum, and eligibility conditions are met, an offset amount of up to $540 is claimable when you pay up to $3000 into your spouse’s superannuation account.
Downsizer Contribution Concession
If you have sold your owner-occupied, for at least 10 years, home and are aged over 55 years, you may be allowed to boost your superannuation account by an extra $300,000 in addition to any other contributions. This could be $600,000 for couples. It is worth seeking professional financial advice to ensure you follow the rules for this concession.
ACT NOW
This financial year is unlike any other in recent years due to the major superannuation reforms to commence on 1 July 2026. This is your last chance to use several contribution strategies to boost your retirement savings.
If you are unsure how much you can contribute or which strategy is right for you, seek advice from YML Group. Acting now can deliver both immediate tax-deductions and long-term financial growth.
How can YML help?
Talk to our YML Super Solutions Team today to see how YML Group can assist you with your superannuation contributions. For more information, view our website (https://ymlgroup.com.au/) and contact us on (02) 8383 4444 or by using our Contact Us page on our website.
