Every year, business owners leave money on the table by missing contribution opportunities that could have reduced their tax bill and grown their retirement savings. 

If you already understand the basics of superannuation and are asking the more important question, “Am I actually making the most of my contributions given my income, business structure, and circumstances?”, this guide is for you. 

Below is a practical breakdown of the strategies worth considering before and after the financial year ends, including what the rules are, who each strategy suits, and where professional advice can make a real difference. 

 Not sure which strategy applies to your situation? Speak with a financial adviser before 30 June to ensure your contributions are received and processed in time. Contact Rhythm Financial today. 

Who should be thinking about EOFY super contributions? 

These strategies are relevant to a wide range of Australian business owners, but they tend to have the greatest impact for the following situations: 

Understanding the two types of contributions 

Before looking at specific strategies, it helps to understand the two contribution types that underpin all of them. 

Concessional contributions (CCs) are made from pre-tax income. This includes employer super guarantee payments, salary sacrifice arrangements, and personal contributions where you lodge a Notice of Intent to Claim a Deduction. These contributions are taxed at 15% inside your super fund, which is significantly lower than most personal income tax rates. The annual cap is $30,000. 

Non-concessional contributions (NCCs) are made from after-tax money. You receive no tax deduction, but the money grows in a concessionally taxed environment. The annual NCC cap is $120,000, and the three-year bring-forward rule allows eligible individuals to contribute up to $360,000 in a single year. 

One important threshold to be aware of is if your total super balance exceeds $1.9 million at 30 June of the prior financial year, you are no longer eligible to make non-concessional contributions at all. This is a hard stop many people don’t know about until it is too late. 

For those aged 67 to 74, the work test applies to voluntary contributions. You must have been gainfully employed for at least 40 hours within a consecutive 30-day period during the financial year to be eligible. There are limited exemptions, so check your eligibility before acting. 

Strategies to consider before 30 June 

1. Top up your concessional contributions cap 

If you have not yet contributed the full $30,000 in concessional contributions this financial year, consider topping up before 30 June. This might mean making a personal deductible contribution or adjusting your salary sacrifice arrangement with enough lead time for it to be processed. 

A practical note on timing, contributions need to be received by your super fund before 30 June to count in the current financial year. Processing delays are common around this period. Give yourself at least a week, preferably more. 

For high-income earners: If your income exceeds $250,000, be aware that an additional 15% tax, known as Division 293 tax, applies to your concessional contributions. This brings the effective tax rate on those contributions to 30% rather than 15%. That said, concessional contributions are still generally worthwhile at this income level because 30% compares favourably to the top marginal rate of 47% (including Medicare levy). Your adviser can help you confirm whether topping up makes sense in your specific circumstances. 

2. Use carry-forward concessional contributions 

If your total super balance was below $500,000 at 30 June of the prior financial year, you may be eligible to access unused concessional contribution cap amounts from the previous five years.  

To illustrate: if you contributed $10,000 in concessional contributions in the 2022-23 financial year when the cap was $27,500, you may have up to $17,500 in unused cap available to carry forward, subject to eligibility. 

This strategy is particularly valuable for business owners who had lean years, or anyone who was not making regular super contributions during a period of lower income. The carry-forward window started in 2018-19, which means the earliest unused amounts are now beginning to expire. If you have not reviewed your carry-forward entitlements recently, this is the year to do it.  

You can check your available carry-forward amounts through your MyGov account, linked to the ATO. 

3. Which structure receives the deduction? 

This is one of the most overlooked questions in EOFY super planning. 

If you operate through a company structure, the business can make super contributions on your behalf and claim them as a business deduction. Alternatively, if you are also an employee of your own business, you can make personal concessional contributions and claim the deduction yourself. 

The key question is: at which rate is the deduction most valuable? 

A company paying the small business tax rate of 25% receives a deduction worth 25 cents in the dollar. But if you personally are in the 39% or 47% marginal tax bracket, claiming that same deduction at the individual level saves you significantly more. In that scenario, a personal deductible contribution is generally more tax-effective than a business-level contribution. 

The calculus shifts once Division 293 applies, or where the business structure involves a trust or partnership. This is where a financial adviser or tax professional adds real value, because the right answer depends on your specific structure and income. 

Sole traders are worth highlighting separately. Many do not pay themselves super at all, which means they miss out on both the retirement savings benefit and the potential tax deduction. If this applies to you, EOFY is a practical moment to catch up using the carry-forward provisions outlined above. 

There is also a structural planning question worth raising: if you are a sole trader generating significant profit and paying a high personal tax rate, it may be worth exploring whether operating as an employee of your own company could improve your overall tax position. This is a more involved conversation, but it is one your adviser can model out for you. 

4. Spouse contributions and contribution splitting 

If your partner has a lower super balance or lower income, there are two strategies worth considering. 

Spouse contributions allow you to contribute to your partner’s super fund using after-tax money. If your partner earns below $40,000 annually, you may be eligible for a tax offset of up to $540 on contributions up to $3,000. The offset phases out as your partner’s income approaches $40,000. 

Contribution splitting allows you to transfer up to 85% of your concessional contributions from the current year into your partner’s super account. Note that splitting happens after the end of the financial year, so this is something you action in the new financial year for contributions made in the year just ended. 

Both strategies can help balance super balances across a couple, which becomes important in retirement planning and when considering transfer balance cap implications. 

5. Non-concessional contributions and the bring-forward rule 

Non-concessional contributions make strategic sense when you have money sitting outside super, such as after a business sale, inheritance, property settlement, or a strong income year, and you want to move it into the concessionally taxed super environment. 

If you are under 75 and eligible, the bring-forward rule allows you to contribute up to $360,000 in a single year (essentially pulling forward three years of NCC entitlements). However, whether you can access the full bring-forward amount depends on your total super balance. 

Given the size of these contributions, it is important to confirm your eligibility and total balance before acting. 

6. Downsizer contributions 

If you are aged 55 or older and have sold your principal place of residence, you may be eligible to make a downsizer contribution of up to $300,000 per person (or $600,000 for a couple) into super. 

Key eligibility conditions include: 

• You must be 55 or older at the time of the contribution 
• The property must have been owned for at least 10 years 
• It must have been your principal place of residence at some point during that ownership period 
• The contribution must be made within 90 days of settlement
   

One significant advantage: downsizer contributions are not subject to the annual NCC cap, and you can make them even if your total super balance exceeds $1.9 million. This makes them one of the few strategies available to high-balance individuals who have otherwise exhausted their contribution options. 

What to do after 30 June 

The work is not over when the financial year ends. The new financial year is one of the best times to set your super strategy for the year ahead, rather than scrambling again in May. 

Notice of Intent to Claim a Deduction: If you made personal contributions and intend to claim them as a tax deduction, you must lodge a valid Notice of Intent to Claim a Deduction with your super fund before you lodge your tax return for that year. If you miss this step, you lose the deduction. This is not a technicality to overlook. 

Review your super statement: Before lodging your return, check your total contributions for the year against your caps. Exceeding your concessional cap means the excess is included in your assessable income, with a 15% offset to avoid double-taxing the contributions tax already paid inside the fund. Knowing where you stand early avoids surprises. 

Set up or review salary sacrifice: The new financial year is the right time to establish or adjust a salary sacrifice arrangement with your employer, rather than waiting until the following May. Spreading contributions across the year reduces the risk of missing the 30 June processing deadline. 

Contribution splitting for the prior year: If you want to split last year’s concessional contributions to your partner’s account, this is processed in the new financial year. Set a reminder to action it early. 

Check your carry-forward entitlements: Your updated carry-forward balance reflects your 30 June super balance and contribution history. Reviewing this in July or August gives you the full year to plan how to use it. 

Ready to review your super contributions strategy before or after EOFY? 

 Rhythm Financial’s advisers can help you identify the strategies that suit your situation and ensure your contributions are structured to achieve the best outcome. Book a conversation with our team today. 

Frequently Asked Questions 

How do I make sure my EOFY super contributions count for this financial year? 

Your contribution must be received and processed by your super fund before 30 June. Do not leave it to the last day. Processing times vary between funds, and delays are common in late June. Aim to have contributions submitted at least five to seven business days before the deadline. 

Can a business owner claim a tax deduction for super contributions? 

Yes, but the question of whether the deduction is claimed at the business level or the personal level depends on your structure and income. For many business owners in higher tax brackets, claiming a personal deductible contribution can be more tax-effective than a business deduction at the company tax rate. Speaking with a financial adviser or accountant before EOFY is strongly recommended. 

What happens if I exceed my super contribution caps? 

Excess concessional contributions are included in your assessable income and taxed at your marginal rate. You receive a 15% tax offset to account for the contributions tax already paid inside the fund. Excess non-concessional contributions attract a penalty tax and must generally be withdrawn. The ATO will notify you if you have exceeded your caps. 

Is it too late to act on super contributions after 30 June? 

No. Several strategies, including contribution splitting, reviewing carry-forward entitlements for the year just ended, and setting up salary sacrifice for the new year, are best actioned after 30 June. The start of the new financial year is also an ideal time to review your super strategy with an adviser and plan contributions across the full year ahead. 

Disclaimer: This article contains general information only and does not constitute personal financial advice. Superannuation rules and contribution caps can change. Please consult a qualified financial adviser before making contribution decisions based on your individual circumstances.