Ah, June 30 – the grand finale of the financial year. For SMSF trustees, it's more than just a date; it's an opportunity to turbocharge your superannuation savings. But here's the kicker: most trustees leave it too late or simply overlook the powerful strategies available to them.
Let me walk you through some game-changing strategies you can implement before June 30 to boost your retirement wealth while potentially saving on tax.
The Concessional Contributions Play
The ATO has generously indexed the concessional contributions cap to $30,000 for the 2024/2025 financial year. These contributions are tax-deductible, reducing your taxable income and giving your super a solid injection of growth.
Tip #1: Use the Carry-Forward Rule
Got a lumpy or irregular income? Or perhaps you’ve been too busy to max out your contributions in previous years? The carry-forward concessional contributions rule allows you to use unused concessional caps from the last five financial years if your total super balance is under $500,000 as of June 30 of the prior year.
Imagine this - Jane, an SMSF member, had only contributed $10,000 in each of the last two years but to her full caps in the years before. That means she can carry forward $40,000 of unused caps and contribute up to $70,000 this year – all tax-deductible.
Action Step:👉 Review your concessional contributions history and see what’s left in the tank. Make the most of it before the June 30 deadline.
The Non-Concessional Contributions Strategy
Now let's talk about non-concessional contributions (NCCs) – these are made from after-tax money, so there's no tax deduction. But they can significantly grow your super without adding to your tax bill later on.
Tip #2: Activate the Bring-Forward Rule
If you're under 75 and haven’t triggered the bring-forward rule in the last three years, you can contribute up to:
$360,000 in non-concessional contributions (three times the standard $120,000 cap)
Or go for $480,000 if you use a contribution suspense account cleverly.
The Suspense Account Strategy
Here's a sneaky but super-smart tactic:
In June, contribute $120,000 to a contributions suspense account.
Then, come July 1, contribute $360,000 using the bring-forward rule.
That's $480,000 in your SMSF within weeks – a turbocharged start to the new financial year.
Action Step:👉 Check your SMSF deed (and make sure it’s a modern one – LY Legal's 2025 deed incorporates all these strategies including suspense accounts.
Why Timing Matters
In the SMSF world, timing is everything. Contributions need to be received and processed by June 30. That means no transfers after hours or pending bank transactions on the final day.
Golden Rule:✅ Funds must hit the SMSF bank account by June 30 – not just be transferred. So, don’t leave it to the last day. If you cannot do it in time use a short term - less than 7 days Promissory Note.
Case Study: The Smith Family SMSF
Meet Tom and Sarah Smith. Their SMSF has a balance just under $500,000, and Tom runs a successful business. In May, their SMSF accountant advises:
Contribute $120,000 to a suspense account in late June.
Come July 1, add $360,000 under the bring-forward rule.
Tom also uses his carry-forward concessional cap and contributes $70,000.
Total Contributions Over Two Months: $550,000!
Tax Impact:
Tom reduces his taxable income significantly.
The SMSF grows faster with a massive cash injection.
And the Smiths have secured a solid chunk of their family wealth into a tax-effective, protected environment.
🚨 Strategic Warnings & Reminders
Trust Deed Check: Not all deeds allow these advanced strategies. LY Legal's modern 2025 deed does.
Contributions Eligibility: Remember, your total super balance must be under $500,000 for carry-forward contributions and under $1.9 million for non-concessional contributions.
ATO Audits: The tax office watches these strategies closely. Documentation and compliance are critical – don't risk it with a poor deed or DIY guesswork.
📞 Need Help?
Contributions, caps, suspense accounts – they all sound simple but can be complex in practice. If you want personalised strategic advice, contact me at LY Legal or grant@grantabbott.com – the experts in SMSF deeds and strategies.
🎯 Final Word
June 30 comes faster than you think. Take action now to maximise your contributions, reduce your tax, and build your family’s financial fortress.
Remember, SMSFs are not a “set and forget” vehicle. Strategy rules the game – and you are the strategist. 💥
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