As the financial year-end approaches, SMSF advisers must implement strategic measures to optimise their clients’ superannuation outcomes. The months leading up to 30 June provide an opportunity to maximise contributions, review investments, manage pension strategies, and ensure compliance with superannuation regulations.

We have summarised some of the key strategies SMSF advisers should focus on for the 2024–25 financial year.

Investment Strategy Review

Under SIS regulations, SMSF trustees must regularly review their investment strategy and ensure it is implemented. Advisers should:

  • Defer income and bring forward expenses where possible to optimise tax outcomes.
  • Assess capital gains and losses, considering whether any realised gains can be offset against carried-forward losses.
  • Rebalance portfolios carefully, ensuring that changes are not solely tax-driven, which could attract ATO scrutiny under ‘wash sales’ and Part IVA anti-avoidance rules.

Contribution Strategies

The lead-up to 30 June is the last chance to maximise contributions within allowable caps. Advisers should consider:

Concessional Contributions (CC)

  • The annual concessional cap is now at $30,000, but the total contributions this year can be increased using carry-forward contributions if the client’s total super balance (TSB) was under $500,000 as of 1 July 2024.
  • Clients with higher incomes in 2025 but expecting lower earnings in 2026 may benefit from making additional contributions before 30 June 2025 using the unallocated contribution reserve strategy.

Non-Concessional Contributions (NCC)

  • The annual non-concessional cap is $120,000 but can be tripled to $360,000 under the bring-forward rule, subject to a TSB limit of $1.9 million.
  • Downsizer contributions remain an option for clients aged 55+ who have owned their home for at least 10 years and wish to contribute up to $300,000 per person into super.

Pension Strategies

Meeting Minimum Pension Payments

  • Advisers must ensure clients withdraw the minimum required amount to maintain tax-free pension status.
  • If a pension shortfall is small (no more than 1/12th of the required amount), a one-time catch-up payment is allowed in the next financial year.

Transition to Retirement (TTR) Pensions

  • For clients under 65, a TTR pension allows access to up to 10% of their super balance annually, providing cash flow benefits for those still working.
  • Once a client reaches 65, the Transfer Balance Cap (TBC) applies, limiting the amount that can be transferred into a pension account (currently $1.9 million, rising to $2 million from 1 July 2025).

Tax Planning Considerations

  • From 1 July 2024, Stage 3 tax cuts came into effect, reducing marginal tax rates for individuals. Advisers should consider the timing of contributions and pension withdrawals in light of these changes.
  • If an SMSF member exceeds their concessional contribution cap, 85% of the excess will be included in their personal income tax return and taxed at their marginal rate.

Final Steps Before 30 June 2025

  • Check documentation and compliance: Ensure all contributions, pension payments, and investment decisions comply with SIS regulations.
  • Consider estate planning implications: Reversionary pension nominations and death benefit nominations should be reviewed for alignment with clients’ wishes.
  • Communicate with clients: Providing proactive guidance before the deadline can prevent last-minute issues and maximise tax efficiency.

By implementing these strategies, SMSF advisers can help their clients optimise their superannuation outcomes while ensuring compliance with regulatory requirements ahead of 30 June 2025.

Please reach out to our Technical Services Team on 1300 023 170 for a further discussion.