Superannuation Contributions 2025–26: Your Complete Guide to Maximising Super Before 30 June

The end of the 2025–26 financial year is just weeks away. Super is on the agenda for millions of Australians. Whether you’re a worker looking to top up your retirement savings, a self-employed person wanting to claim a tax deduction (just like work-from-home costs), or a business owner (explore the instant asset write-off for equipment), knowing the current super rules can save you thousands. It can also help you avoid costly penalties.

Here’s your complete guide to super contributions for 2025–26.

The Super Guarantee: What Employers Must Pay

If you employ staff, the Super Guarantee (SG) rate for 2025–26 is 12%. This is the final scheduled increase under current law. The rate applies to each eligible employee’s Ordinary Time Earnings (OTE). OTE includes regular wages, commissions, and shift loadings. It generally does not include overtime.

The maximum super contribution base for 2025–26 is $62,500 per quarter. Employers don’t have to pay SG on earnings above this amount. The maximum SG per employee is therefore $7,500 per quarter.

Important upcoming change: From 1 July 2026, the government’s “Payday Super” reform will require employers to pay SG at the same time as wages. This is a big shift from the current quarterly cycle. Now is the time to review your payroll systems.

Before-Tax Contributions: The $30,000 Cap

Before-tax contributions (also called concessional contributions) are made from pre-tax income. They include:

• Employer SG contributions
• Salary-sacrifice contributions
• Personal contributions where you claim a tax deduction

For 2025–26, the cap is $30,000. Contributions within this cap are taxed at just 15% inside your super fund. This is well below most people’s marginal tax rate (learn more about how capital gains are taxed at your marginal rate). If you go over the cap, the excess is added to your taxable income and taxed at your marginal rate (with a 15% offset).

Carry-Forward Unused Amounts

Was your Total Super Balance (TSB) below $500,000 on 30 June 2025? If so, you may be able to carry forward unused cap amounts from previous years (going back to 2019–20). This “catch-up” strategy is great for people who took time out of work, had variable income, or simply didn’t max out contributions in earlier years.

You can check your available carry-forward amounts through ATO online services via myGov.

After-Tax Contributions: The $120,000 Cap

After-tax contributions (also called non-concessional contributions) are made from money you’ve already paid tax on. They are not taxed when they enter your super fund. For 2025–26, the yearly cap is $120,000. Your eligibility depends on your TSB as at 30 June 2025.

If your TSB was $2.0 million or more on 30 June 2025, your after-tax cap for 2025–26 is nil.

The Bring-Forward Arrangement

If you’re under age 75, you can contribute up to three years’ worth of after-tax contributions in a single year. This is called the bring-forward arrangement:

TSB on 30 June 2025	Bring-Forward Period	Max Contribution
Less than $1.76 million	3 years	$360,000
$1.76M to less than $1.88M	2 years	$240,000
$1.88M to less than $2.0M	No bring-forward	$120,000
$2.0 million or more	N/A	$0

Claiming a Tax Deduction for Personal Super Contributions

Are you self-employed, a contractor, or does your employer not offer salary sacrifice (and its FBT implications)? You can still make personal contributions and claim them as a tax deduction. This turns after-tax contributions into before-tax ones.

Here’s how:

1. Make your personal contribution to your super fund before 30 June 2026
2. Lodge a Notice of Intent to Claim a Deduction with your super fund
3. Get written acknowledgment from your fund
4. Claim the deduction in your 2025–26 tax return

You must lodge the notice before you submit your tax return. Don’t skip this step. Without it, you can’t claim the deduction.

Division 293 Tax: High-Income Earners Take Note

If your income plus before-tax contributions exceed $250,000, you’ll pay an extra 15% Division 293 tax on those contributions. This brings the effective tax rate to 30%. That’s still lower than the top marginal rate of 47%, but it’s worth knowing about.

The ATO sends a separate Division 293 bill after you lodge your tax return. You can pay from personal funds or have the amount taken from your super.

Special Contribution Strategies Worth Knowing

Super Co-Contribution for Low-to-Middle Income Earners

Do you earn $47,488 or less? If you make a personal after-tax contribution, the government will co-contribute 50 cents for every dollar, up to $500. The co-contribution phases out completely at $62,488. It’s essentially free money — and one of the most underused super strategies available.

Downsizer Contributions (Age 55+)

Are you aged 55 or older? Have you sold your main home (owned for at least 10 years)? You can contribute up to $300,000 ($600,000 per couple) into super from the sale proceeds. Downsizer contributions don’t count towards your before-tax or after-tax caps. There’s no upper age limit or work test. You must make the contribution within 90 days of settlement.

How Carry-Forward Rules Work in Practice

The carry-forward rule is one of the most powerful — and most misunderstood — super strategies. Here’s a real-world example.

Sarah is a 45-year-old marketing manager earning $120,000 per year. Her employer pays 12% SG ($14,400). She hasn’t made any extra contributions for the past three years. Her total super balance is $280,000 — well under the $500,000 threshold.

Over those three years, Sarah has built up roughly $46,800 in unused cap space (3 × $15,600 unused). In 2025–26, she can contribute up to $76,800 in total before-tax contributions. That’s her $30,000 annual cap plus the carried-forward amount. By salary sacrificing an extra $30,000 this year, she saves around $4,950 in tax compared to receiving that amount as salary.

Tip: Log into myGov and check your ATO online services to see your exact carry-forward balance. Don’t guess — the numbers must be accurate to avoid excess contributions tax.

Spouse Contributions: A Smart Strategy for Couples

Does your spouse earn less than $40,000 per year? You can make after-tax contributions into their super account and receive a tax offset of up to $540. To get the full offset, contribute at least $3,000. Your spouse’s income must be $37,000 or less. The offset phases out completely at $40,000.

Here’s an example. Mary works part-time and earns $30,000. Her partner John contributes $3,000 into Mary’s super fund before 30 June. John receives a $540 tax offset on his return. Mary’s retirement savings get a meaningful boost. It’s a win-win that many couples overlook.

Salary Sacrifice vs After-Tax Contributions: Which Is Better?

Both approaches reduce your tax bill, but they work differently:

• Salary sacrifice reduces your pre-tax income. Your employer sends the money directly to your super fund. It’s taxed at 15% inside super. This is ideal if you want a “set and forget” approach with regular payroll deductions.
• After-tax (personal) contributions give you more flexibility. You contribute from your bank account and then claim a tax deduction via a Notice of Intent. This suits people with irregular income, such as freelancers or contractors.

For most employees on a steady salary, salary sacrifice is simpler. But if you receive bonuses, commissions, or lump-sum payments, making a personal contribution closer to 30 June gives you more control.

Common Mistakes to Avoid

Even experienced investors trip up on super contributions. Watch out for these pitfalls:

• Missing the deadline. Contributions must land in your fund’s bank account by 30 June — not just be started. Allow at least five business days for processing.
• Forgetting the Notice of Intent. If you claim a personal deduction without lodging the notice first, the ATO will reject it. Lodge the notice and get your fund’s acknowledgment before filing your return.
• Going over your cap. Excess before-tax contributions are added to your taxable income at your marginal rate. Check your year-to-date contributions in myGov before topping up.
• Ignoring the co-contribution. If you earn under $62,488, even a small $1,000 after-tax contribution could trigger a free government top-up. Don’t leave this money on the table.

Timing Strategies for Maximum Benefit

Smart timing can make a real difference to your super outcome:

• Contribute in May, not June. Processing delays in the last week of June catch many people out. Aim to have funds transferred by mid-May at the latest.
• Review your carry-forward balance early. Check in July each year so you can plan contributions across the full 12 months.
• Coordinate with your employer. If you salary sacrifice, confirm your June payroll run date. Some employers process the final pay run before 30 June, others after.

Maximising the Government Co-Contribution

The co-contribution is one of the easiest ways to grow your super. Yet fewer than 30% of eligible Australians claim it each year.

To qualify in 2025–26, you need to earn at least 10% of your income from employment or self-employment. You must also lodge your tax return. The ATO calculates and pays the co-contribution automatically — no application needed.

Consider Lisa, a part-time childcare worker earning $42,000. She contributes $1,000 from her after-tax savings before 30 June. The government matches it with $500 — a 50% return with zero risk. If Lisa earned $55,000, the co-contribution drops to around $187. Still worth claiming.

Key tip: Don’t claim a tax deduction on the contribution you want matched. If you lodge a Notice of Intent, it becomes a before-tax contribution and no longer qualifies. Keep it as an after-tax contribution to trigger the government top-up.

Real-World Scenario: A Tradie Optimising Super

Meet Ben, a 38-year-old electrician running his own business as a sole trader. Ben earns $95,000 in 2025–26 and has a super balance of $145,000. No employer pays SG on his behalf.

Ben’s strategy combines three approaches:

• Personal deductible contribution of $30,000. Ben transfers $30,000 to his super fund in April and lodges a Notice of Intent. His taxable income drops from $95,000 to $65,000. This saves roughly $9,750 in income tax. Inside super, the $30,000 is taxed at just 15% ($4,500).
• Carry-forward top-up. Ben only contributed $8,000 in each of the previous two years. He has around $44,000 in unused cap space. He adds another $15,000 using carry-forward. His total before-tax contribution is now $45,000.
• Spouse contribution for his partner. Ben’s wife Emma works casually and earns $28,000. Ben contributes $3,000 into Emma’s super and claims the $540 tax offset at EOFY.

In total, Ben saves over $10,000 in tax while boosting both his and Emma’s retirement savings. This multi-layered strategy is exactly what a qualified adviser familiar with Payday Super changes can help you build.

Preparing for Payday Super in 2026–27

From 1 July 2026, employers must pay super at the same time as wages — not quarterly. This affects how salary sacrifice works in practice. If you currently salary sacrifice, speak with your employer and payroll provider now.

For self-employed people like Ben, the change doesn’t directly apply. However, it signals the government’s broader push toward real-time super compliance. Staying ahead means fewer surprises and better planning. Read our complete guide to Same Day Super for full details.

Critical 30 June 2026 Deadlines

• Contributions must be received by your super fund on or before 30 June 2026 to count towards 2025–26 caps. Allow several business days for processing. Don’t leave it to the last minute.
• Notice of Intent to Claim a Deduction must be lodged before you file your tax return (or by 30 June 2027 at the latest). Earlier is always better.
• Salary sacrifice arrangements must be in place before the income is earned. You can’t salary sacrifice money you’ve already been paid.

Sources

• ATO – Concessional contributions cap
• ATO – Non-concessional contributions cap
• ATO – Key super rates and thresholds
• ATO – Division 293 tax
• ATO – Downsizer super contributions
• ATO – Notice of intent to claim a deduction
• ATO – How much super to pay

Ready to make the most of your super before 30 June? Contact TaxServe Australia today for expert super advice. Don’t leave any tax savings on the table this financial year.