Essential End-of-Financial-Year Checklist for 2024–25
As we approach the end of the 2024–25 financial year, now is the perfect time to pause, review, and take action. Whether you’re managing super contributions, maximising deductions, or simply getting your records in order, a clear and proactive approach can make a big difference. At JBS Financial, we’re here to guide you through the process and ensure you’re ready for the year ahead with confidence. Here’s an updated checklist to guide you:
Review Superannuation Contributions
- Concessional Contributions Cap: For the 2024–25 financial year, the concessional (before-tax) contributions cap is $30,000, up from $27,500 in 2023–24.
- Non-Concessional Contributions Cap: The non-concessional (after-tax) contributions cap has increased to $120,000, up from $110,000.
- Bring-Forward Rule: If you’re under 75, consider utilising the bring-forward rule to make up to three years’ worth of non-concessional contributions in a single year, allowing up to $360,000 in contributions.
- Carried Forward Concessional Contributions: If you have unused concessional cap amounts from previous years, you may be able to carry them forward to increase your contribution caps in later years. You’re eligible to do this if you have both:
- a total super balance of less than $500,000 at 30 June of the previous financial year
- unused concessional contributions cap amounts from up to 5 previous years.
- The unused cap amounts you can carry forward depends on the amount you have contributed in previous years, starting from 2018–19. You can carry forward unused cap amounts from up to 5 previous financial years, including when you were not a member of a super fund.
- Unused cap amounts are available for 5 years and expire after this. For example, a 2019–20 unused cap amount that is not used by the end of 2024–25 will expire.
Understand Upcoming Superannuation Changes
- Superannuation Guarantee (SG) Rate Increase: From 1 July 2025, the SG rate will rise from 11.5% to 12%. Ensure your payroll systems are updated accordingly.
- Tax on Super Balances Over $3 Million: Starting 1 July 2025, earnings on superannuation balances exceeding $3 million will be taxed at 30%, up from the standard 15%. This measure is not yet law but is proposed to take effect from this date.
- Transfer Balance Cap Increase: The general transfer balance cap will increase from $1.9 million to $2 million on 1 July 2025, affecting the amount you can transfer into a tax-free retirement account.
- Superannuation on Paid Parental Leave: From 1 July 2025, the government will pay superannuation on government-funded Parental Leave Pay, enhancing retirement savings for eligible parents.
Maximise Tax Deductions
- Prepay Expenses: To bring forward deductions, consider prepaying deductible expenses, such as insurance premiums or investment property expenses.
- Review Investment Portfolio: Assess your investment portfolio for any capital gains or losses. Realising losses can offset gains and reduce your taxable income.
- Charitable Donations: To claim a deduction in this financial year, ensure any charitable donations are made before 30 June.
- Organise Financial Records
- Gather Documentation: Collect all necessary documents, including income statements, receipts for deductions, and records of any asset purchases or sales.
- Review PAYG Withholding: Ensure your Pay As You Go (PAYG) withholding amounts are accurate to avoid any surprises at tax time.
Consult with Your Financial Adviser
Given the upcoming changes, it’s advisable to consult with your financial adviser to tailor strategies to your specific circumstances and ensure compliance with the new regulations.
Take Action Now
If you have any questions regarding your tax planning or super contributions, now is the time to act. Reach out to the specialist team at JBS Financial — we’re here to help you take control of your financial future and finish the financial year with confidence.
📞 Contact the JBS Financial team
Sources:
- Vanguard – Your 30 June Super Checklist
- ATO – Superannuation Guarantee
- ATO – Tax on Super Balances over $3 Million
- ATO – Transfer Balance Cap Indexation
- ATO – Superannuation on Paid Parental Leave
- Concessional contributions cap | Australian Taxation Office
- News.com.au – Changes from 1 July 2024