Super Checklist

Make the most of your super before 30 June 2025 with these smart, simple tips.

Check Your Contribution Limits

Before adding more to super, log in to myGov > ATO > Super > Information to check how much you’ve already contributed.

Tip: If you’re in an SMSF, your info may not be up to date in myGov, but we can help you work this out.

Add to Super and Claim a Tax Deduction

You may be able to make a personal deductible contribution and claim it at tax time.

To be eligible:

Don’t forget: To claim a tax deduction, submit a Notice of Intent to Claim a Deduction to your super fund and get their confirmation before lodging your tax return or making withdrawals, rollovers, or starting a pension.

Use Up Unused Contribution Limits

Haven’t used your full concessional contribution cap in recent years? You may be able to catch up using the carry-forward rule if your total super balance is under $500,000 on 30 June 2024.

Tip – Unused limits from 2019–20 expire after 30 June 2025 so don’t miss out.

Split Contributions with Your Spouse

You can split up to 85% of your 2023–24 concessional (pre-tax) contributions with your spouse before 1 July 2025. 

This is a great way to even out your balances and plan ahead for retirement.

Note – To use this strategy, your spouse must be under their preservation age or aged 64 or younger and not retired when you make the request to your fund.

Get a Tax Offset for Spouse Contributions

If your spouse earns less than $40,000, consider making an after-tax contribution to their super.

By doing so, you could get up to a $540 tax offset while boosting their retirement savings.

Grab a Government Co-Contribution

If you earn less than $60,400 and at least 10% comes from work or running a business, you could be eligible for a government co-contribution. All you need to do is add up to $1,000 to your super and the government may add up to $500 extra.

Avoid the Division 293 Tax Trap

If your income (plus employer contributions) is over $250,000, you may pay an extra 15% tax on some of your super contributions.

Strategies like bringing forward expenses or deferring income may help keep you below the threshold.

Maximise Non-Concessional (After-Tax) Contributions

If you’re under 75, you may be able to contribute up to $360,000 in one year using the bring-forward rule.

New rules from 1 July 2025 may allow you to contribute even more – speak with us about getting the timing right.

Need Help?
We’re here to help you make the most of EOFY tax and super opportunities. Contact us to discuss what options might work best for your situation.

Getting on the front foot for your 2024-25 tax return

Here are some more detailed tips relating to a couple of common claims that often attract ATO scrutiny.

Working from home

A lot of people are still regularly working from home for at least part of the week. If you do, you are entitled to a deduction for the additional costs you incur. To be eligible to make a claim it is not necessary to set aside an area exclusively for business or employment related use. A shared dining table is all you need. Except in very unusual cases, deductions are not available for occupancy costs such as mortgage interest, rent, rates and insurances.

Most people make their claim using the fixed rate method, which is 70 cents per hour for 2024-25. The fixed rate method covers home and mobile internet costs, mobile and home phone costs, power and gas charges and stationery and computer consumables. Under the fixed rate method, you can also claim depreciation and repairs for assets used such as desks, office chairs and laptops, where those items cost more than $300. This is on top of the 70 cents per hour.

Alternatively, you could use the actual cost method, but that requires more detailed records and receipts.

We can help you to legitimately maximise your claim, but before you can claim anything, you need to have:

Use of your own vehicle for business or employment related purposes

For starters, any reimbursement you receive from your employer, either on a cents per kilometre basis or a flat amount, is assessable in your hands and will be shown on your payment summary. Not everyone who uses their own car for work is reimbursed in this way, however, and you are still entitled to make a claim, in spite of not receiving any reimbursement.

There are two alternative ways of claiming a deduction for business or employment related car use – the cents per kilometre method or the logbook method. For those who use the cents per kilometre method (which only applies to claims of up to 5,000 kms) the process is pretty simple – just multiply the kilometre figure by 88 cents. So if your business or employment related use was 4,000 kms, your 2024-25 claim would be $3,520.

Under the cents per kilometre method, you don’t need to keep a full-blown logbook that tracks every journey. However, the ATO may ask you how you came up with the claimed distance, especially where you’re pushing up against the 5,000 km threshold. So you will need to have a diary of some sort that shows how you have estimated the kilometres being claimed – anything to prove you haven’t just plucked the figures out of thin air.

People sometimes get confused about what qualifies as business or employment related car use. You can make a claim where:

Non-deductible travel includes situations where:

The logbook method is the alternative to the cents per km method. As the name implies, you need to keep a detailed logbook, but only for a representative period of twelve weeks to work out your business related use. Provided your pattern of car usage remains broadly the same, the resulting business use percentage is good for five years, after which you have to repeat the process. The logbook method might be more appropriate where your business or employment related car use is well over 5,000 kms.

For each journey, the logbook needs to show the date of the trip, the starting and finishing odometer reading, the distance travelled and the reasons for the journey. Where you are completing your logbook for the 2024-25 financial year, you need to complete the logbook entries during that year, after each trip. The logbook should come up with a business percentage, which can then be applied to all the costs associated with running the car, including depreciation. Receipts, invoices or other documentary evidence has to be maintained to verify the actual expenditure being claimed.

Car logbooks are available from Officeworks and most stationers, and can also be ordered online.

We can help you with the record keeping and logbook requirements.

Employees vs. Contractors: What Sets Them Apart

The Australian Taxation Office (ATO) has recently revised its guidance on differentiating between employees and independent contractors. This change follows several court rulings that clarified the criteria for determining whether a worker is genuinely an employee or an independent contractor. 

Whether you’re a worker or a business owner, understanding these differences is crucial, as they have an impact on tax, superannuation, and workplace entitlements.

Why does the difference matter?

How a worker is classified – either as an employee or a contractor – impacts who is responsible for paying taxes, providing benefits like superannuation and leave, and who carries legal responsibilities. Misclassifying a worker can lead to serious financial consequences, including unpaid entitlements and penalties from the ATO.

Key differences between employees and contractors

The primary difference lies in how the worker interacts with the business:

The contract between the business and the worker is crucial in determining a worker’s classification. While day-to-day work practices play a role, the legal rights and responsibilities outlined in the contract hold the greatest significance.

Here are the ATO’s most important considerations:

Superannuation and contractors

Even if someone is considered a contractor, they might still be entitled to superannuation if:

Workers who are always employees

Some workers are always considered employees, no matter what. This includes apprentices, trainees, labourers, and trades assistants.

Apprentices and trainees work while completing recognised training to earn a qualification, certificate, or diploma. They might be full-time, part-time, or even school-based and usually have a formal training agreement.

Most of these workers are paid under an award, meaning they have set pay rates and conditions. Businesses hiring them must follow the same tax and superannuation rules as they do for other employees.

Companies, trusts, and partnerships are always contractors

If a business hires a company, trust, or partnership (rather than a person) it’s always considered a contracting arrangement. However, people working for that entity could still be employees of that entity, rather than the business hiring the services.

Why this matters to you?

For workers, knowing your status helps ensure you receive the correct pay and benefits. For businesses, classifying workers correctly helps avoid fines and ensures compliance with tax and employment laws.

If you need more details or want to check your situation, reach out to us for more information. Proper classification today can prevent costly mistakes in the future.

Good CGT records can save you money

Congratulations! Your investment has done well, and you’re cashing in. You’re happy, and so too is the ATO. That substantial capital gain has brought wealth and a hefty tax bill. 

Sharing might be part of the deal but when it comes to your hard-earned profits, you might prefer to keep the ATO’s share to a minimum. Keeping good records will help do this. Here are some tips to help you hold onto more of your windfall and avoid that hefty tax bill.

How much did your investment really cost?

Good record-keeping is essential; it helps your accountant ensure that you pay no more tax than you must. You probably already know that what you get paid for your investment isn’t necessarily your gain. Basically your ‘gain’ on an investment is what you get less what it cost you, but do you really know what it cost you? 

The most obvious cost to keep a record of is the asset purchase price or ‘acquisition cost’ but there are some lesser-known costs that are often forgotten. Keep records of anything falling under these four categories as well.

1. Incidental costs of acquisition

These are costs directly associated with acquiring the asset, including such things as:

2. Non-capital ownership costs

You can sometimes add certain ownership costs to your cost base if they weren’t previously claimed as tax deductions. These include:

3. Capital expenditure on improvements

Your expenses covering things to increase or preserve the value of the asset are also relevant. Some examples include:

4. Costs of establishing, preserving, or defending ownership

Hopefully you don’t have too many legal expenses but if you do they too can be taken off the gain. If you have incurred costs related to defending your ownership in court or any legal fees incurred in a dispute over title keep a record of them as they will reduce the gain.

You’ve identified all the costs, but can we further reduce the gain? 

That capital loss you made earlier in the year wasn’t nice but there is a silver lining: it can offset that gain. If that’s not enough to wipe out the gain, dig deeper into your records. Was there any unused loss in a prior year? We can use that too!

Keep note of when you bought it

If you bought that asset prior to 20 September 1985, yippy no CGT! If you bought it over 12 months ago only half the net gain (after costs and losses) is assessable. So, if you’re thinking of selling an asset but haven’t held it for a year, consider hanging on to it just that little bit longer.

Final thoughts

By understanding what the costs are and keeping thorough records, you can legally minimise your CGT liability. 

Speak to us about what things you should keep records of to take full advantage of any applicable deductions and exemptions.

Market volatility: Super’s silver lining

If your super balance has suffered from recent market volatility there may be opportunities available now that weren’t before. Here are a few worth exploring.

Entitlement to an Age Pension

If you’re 67 or older, a lower super balance may mean you now qualify for the Age Pension or a higher payment if you are already getting an Age Pension.

Most assets, including super and super pensions, are assessed under the Centrelink asset test to determine eligibility.

The Age Pension is subject to both income and asset tests, and the one resulting in the lower payment applies.

If your assets fall below the cut-off threshold, you may qualify for a part Age Pension (subject to the income test). If they’re below the full pension asset test threshold, you may receive the maximum entitlement.

The table below shows the asset thresholds for receiving a full pension, as well as the cut-off point beyond which you’re no longer eligible:

If your assets were between the thresholds and have reduced, you may be entitled to a larger Age Pension than before. As an example, if you are a single Age Pensioner and not getting the maximum Age Pension because your assets are too high, then a reduction in the value of your assets by $10,000 will increase your Age Pension by $780 per annum or $30 per fortnight under the asset test. This represents a 7.8% increase in entitlements which may be more than the income actually produced on assets.

Ability to make further non-concessional contributions

That dip in your super balance may allow you to contribute more into super from 1 July 2025. How much you have in super and super pensions at 30 June of the previous financial year can impact how much you can contribute as a voluntary ‘after-tax’ non-concessional contribution (NCC) in the current financial year. 

For instance, if your total super balance (TSB) – which includes all your superannuation interests as at 30 June 2025 (including both super and pension accounts) – is lower, you may be able to make a larger NCCs from 1 July 2025.

As a reminder, the ‘bring-forward rules’ allow eligible individuals to contribute up to three years’ worth of NCCs in a single financial year. This can be especially useful if you have a lump sum to invest, such as from an inheritance or the sale of an asset or property.

However, the amount you’re able to contribute under these rules will depend on your TSB as at 30 June 2025. With the TSB thresholds set to increase from 1 July 2025, new contribution opportunities may become available in the new financial year.

The table below outlines the TSB thresholds that will apply when determining your bring-forward cap for 2025/26:

Commence an account based pension

Starting your first account-based pension (ABP) during a market dip can be a smart move, especially if you’re within the general transfer balance cap. The cap is currently set at $1.9 million for anyone starting their pension for the first-time this year, and it limits how much you can transfer into a pension account.

As a background, when you transfer funds into an ABP, that amount counts towards your transfer balance cap. However, any growth on your investments after that point doesn’t affect your cap. So, if markets recover while your money is in the pension phase, the gains stay within your account and you won’t be penalised for going over the cap.

And more good news – if you haven’t yet started a retirement phase income stream like an ABP, the general transfer balance cap is set to increase to $2 million from 1 July 2025, allowing you to invest a further $100,000 in the tax-free pension phase!

Seizing the moment

A drop in your super balance might present new opportunities, talk to us to see how recent market volatility could help shape your retirement strategy.

Downsizer Super Contributions: Dispelling three myths

Billions of dollars in downsizer super contributions have been made since its introduction in 2018. Downsizer contributions are popular, but three common misconceptions keep them from being more so.

Downsizer super rules allow people aged 55 and over who sell their home to contribute up to $300,000 into super. The rules say that you can be too young to make the contribution, but you can never be too old. This is why people who usually can’t make contributions due to their age love downsizer contributions. 

People with large amounts to contribute also love downsizer contributions because they allow you to contribute over and above the ordinary contribution cap limits. 

The “downsizer super contributions” has caused confusion about who is eligible and when. It is important to speak to an adviser to confirm your eligibility, but don’t be fooled by the following three myths which stop people from making a downsizer contribution.

You must“downsize” your home

A common misconception is that you must “downsize” by purchasing a cheaper home. While selling your home is required, there is no obligation to buy a less expensive property – or even to purchase a new home at all. In fact, some people choose to “upsize” and make a downsizer contribution using other savings. This is completely acceptable (see below).

Proceeds must come directly from the sale

The downsizer contribution does not need to come directly from the sale proceeds. If all the sale proceeds are used to purchase a new home, the individual can use savings elsewhere to fund the contribution. Individuals may also make a downsizer contribution in the form of an ”in-specie” contribution of another asset like listed shares so long as the value of the asset is within the allowable limits i.e. the lesser of sale proceeds or $300,000. Remember only self-managed-super funds generally accept in-specie contributions and these are limited to specific assets like listed shares, business real property and units in a widely held unit trust such as a managed fund.

You must live in the home at the time of selling

Another misunderstanding is that you must be living in the home when it’s sold. This is untrue but it is necessary to have lived in the home at some point. This requirement exists because eligibility for a downsizer contribution depends on qualifying for at least a partial main residence capital gains tax (CGT) exemption. While you must have previously lived in the home, it does not need to be your main residence when you sell it. 

Conclusion and helpful checklist

Understanding the downsizer rules will help you to ignore the myths. It is important you speak to a qualified adviser to confirm your eligibility, but the following checklist may help you check off on your eligibility..

Essential reminder

Don’t forget to submit the “Downsizer contribution into super form” (NAT 75073) to your fund with or before the contribution is made.