EOFY 2025–26 and Your SMSF
What you need to do before 30 June 2026
Every year, 30 June creeps up faster than we expect, and for self-managed super fund trustees, it brings a unique set of jobs to tick off. Unlike a regular super fund, where someone else is largely managing the paperwork, SMSF trustees carry the responsibility (and the opportunity) themselves.
That’s good news and bad news. The bad news is there are housekeeping tasks that genuinely need your attention before the financial year closes. The good news is that EOFY also opens the door to some valuable strategies, ways to grow your super, reduce tax, and set yourself up for a more comfortable retirement, that simply aren’t available once 1 July arrives.
This article walks you through what to check, what to consider, and what’s changing, so you can make the most of the time you have left this financial year.
IN THIS ARTICLE
1. Review Your Contribution Opportunities
If you’re looking to grow your super and reduce your tax bill at the same time, contributions are where the real opportunities sit. Let’s run through what’s available this year.
Concessional (before-tax) contributions
Concessional contributions are the ones that come from before-tax money, and they’re a great way to build your super while potentially lowering your personal tax bill.
The concessional contribution cap for 2025–26 is $30,000.
This cap includes:
- your employer’s super guarantee contributions (now 12%); and
- any salary sacrifice and personal contributions you claim as a tax deduction.
All of these add up together towards the same $30,000 limit.
CHECK NOW
- Add up what you’ve already contributed this year (employer SG + salary sacrifice + personal) and top up before 30 June if you’re under the cap.
- Timing matters: contributions only count in the year your fund actually receives it, meaning the day it is deposited. Super providers have cut-off dates, so don’t leave it to the last day.
- Ask your employer about salary sacrifice: it’s an easy, tax-effective way to build your super straight from your pre-tax pay.
Personal deductible contributions
Most people, whether employed or self-employed, can make a personal contribution to super and claim it as a tax deduction in their personal return.
Why bother? Inside super, your contribution is taxed at just 15% (or 30% if you earn $250,000 or more). Compare that to your marginal tax rate, which could be as high as 47% including the Medicare Levy, a saving of up to 32%.
Here’s how to make sure it counts:
- Lodge a Notice of Intent to Claim a Deduction form with your super provider before you lodge your tax return (or by the end of the following financial year, whichever comes first).
- Wait for your fund’s acknowledgement letter. You need this before you roll over your super, start a pension, or lodge your tax return.
- Make sure the contribution is received and cleared by your fund by 30 June 2026, not just sent.
- If you’re aged 67 to 74, you’ll need to have met the work test during the financial year.
IMPORTANT
If you don’t have the Notice of Intent lodged and the acknowledgement letter in hand, you simply can’t claim the deduction. There are no exceptions, so don’t lodge your return without it.
Catch-up (carry-forward) concessional contributions
Haven’t used your full concessional cap in recent years? You may be able to make up the difference now.
If your Total Superannuation Balance (TSB) was under $500,000 on 30 June 2025, you can contribute more than the standard $30,000 cap this year by using any unused cap amounts from the previous five financial years.
This can be especially useful if you’re on a high marginal tax rate, want to give your super a boost, or have had an unusually high-income year, for example, from selling an asset and realising a capital gain.
DEADLINE TO WATCH
Unused concessional cap amounts from 2020–21 expire for good on 30 June 2026. There’s no extension, it’s genuinely use it or lose it. Log in to myGov (ATO online services) to check what you have available before it disappears.
Here’s how this might play out in practice:
| Example: Using a carry-forward contribution | |
|---|---|
| Who | Harry (47) and Abby (45), both earning $190,000 a year |
| What happened | They sold an investment property, adding $100,000 of taxable capital gain to their income this year. Both have super balances under $500,000. |
| What they found | After checking myGov, Harry had $50,000 of unused cap and Abby had $30,000, both built up over the past five years. |
| What they did | Before 30 June, they each made an extra personal concessional contribution using their unused caps, and claimed the deduction in their tax returns. |
| The result | Harry saved around $16,000 in tax, and Abby saved around $9,600, directly offsetting the tax on their capital gain. |
Non-concessional (after-tax) contributions
Another way to grow your super is with money you’ve already paid tax on, known as a non-concessional contribution (NCC). You won’t get a tax deduction, but your money still benefits from super’s low 15% tax rate on investment earnings, and potentially tax-free income down the track.
The non-concessional contribution cap for 2025–26 is $120,000. Contributions are allowed up to 28 days after month turning 75.
How much you can actually contribute depends on your Total Superannuation Balance (TSB) at 30 June 2025:
| TSB at 30 June 2025 | NCC bring-forward available |
|---|---|
| Under $1.76M | $360,000 (3-year bring-forward) |
| $1.76M to under $1.88M | $240,000 (2-year bring-forward) |
| $1.88M to under $2M | $120,000 (current year only) |
| $2M or more | Nil – no NCC available |
The three-year bring-forward is triggered automatically the moment you contribute more than $120,000 in a single year. Once that happens, your total non-concessional contributions across the following three years can’t exceed $360,000.
Turned 75 during 2025–26? Your NCC needed to be made within 28 days after the end of your birthday month, so check this deadline carefully if it applies to you.
OPPORTUNITY
If your balance previously stopped you making non-concessional contributions, it’s worth checking again. With the transfer balance cap rising to $2 million, some members who were previously locked out may now be eligible. Check your TSB at 30 June 2025 to see where you stand.
Non-concessional contributions aren’t just about adding to your super, they can also play a role in estate planning, as this example shows.
| Example: Using a withdrawal and re-contribution for estate planning | |
|---|---|
| Who | Ben and Beth, both 61, recently retired |
| Their situation | Ben has $3 million in super and Beth has $1 million, mostly built up through employer and personal concessional contributions. Because of this, most of their balances sit in the ‘taxable component’. They have independent adult children, and under their wills, their super will pass to their estates and ultimately to their children. |
| The issue | When taxable super is paid directly to an independent adult child, it’s taxed at 17% (including Medicare) and when paid via the Estate 15% (no Medicare). The tax-free component, by contrast, is taxed at 0%. |
| The strategy | Ben withdraws $480,000 from super. Beth then re-contributes it as a non-concessional contribution, $120,000 in June 2026, then $360,000 in July 2026 using the bring-forward rule. |
| Why it helps | This converts taxable super into tax-free super, and also helps even out Ben and Beth’s balances, useful for maximising how much each of them can eventually move into a tax-free pension. |
| The benefit | On the $480,000 re-contributed, this could reduce the tax their children eventually pay on their inheritance by up to $72,000. |
Downsizer contributions
Sold the family home recently, or thinking about it? You may be able to give your super a significant boost, regardless of how much you already have in super.
If you’re 55 or older, you can contribute up to $300,000 per person ($600,000 per couple) from the proceeds of selling your home.
The key conditions are:
- You (or your spouse) must have owned the home for at least 10 years, though it doesn’t need to have been your primary residence for the whole time.
- The contribution must be made within 90 days of settlement.
- You’ll need to provide the ATO Downsizer form to your fund at or before the time of contributing.
- It’s a once-only opportunity per person, and the amount does count towards your Total Superannuation Balance, so factor that into any other strategies you’re planning.
Downsizing often pairs well with other contribution strategies, as this example shows.
| Example: Combining a downsizer contribution with the bring-forward rule | |
|---|---|
| Who | Bernard (69) and Kate (70) |
| Their situation | They sold their family home for $1.4 million, owned by Kate for 15 years. Their super balances are $800,000 each. |
| Downsizer contribution | Each contributes $300,000 (a combined $600,000). Bernard is eligible too, as Kate’s spouse. |
| Plus bring-forward NCCs | Because their TSBs sit below the relevant thresholds and they are under age 75, they can each also contribute $360,000 using the three-year bring-forward. |
| The result | Bernard and Kate can each add $660,000 to their super, a combined $1.32 million, from the sale of their home. |
| Timing | They need to contribute the downsizer amount within 90 days of settlement, and lodge the signed ATO form at or before the time of contributing. |
Spouse contributions
If your spouse isn’t working or earns a modest income, contributing to their super can help build their retirement savings, and put a little money back in your pocket too, in the form of a tax offset of up to $540.
| Spouse income (per year) | Maximum tax offset |
|---|---|
| $37,000 or less | $540 (if you contribute $3,000) |
| $37,001 – $39,999 | Reduced offset by 18c for every dollar above $37,000 |
| Over $40,000 | No offset |
To be eligible, your spouse needs to be under 75 when you make the contribution, and have a Total Superannuation Balance under $2 million on 30 June 2025. Their income for this test includes assessable income, reportable fringe benefits, and reportable employer super contributions.
Splitting contributions with your spouse
You can also share the load the other way, by splitting up to 85% of your own concessional contributions from 2024–25 into your spouse’s super, any time before 30 June 2026. Your spouse needs to be under preservation age, or between preservation age and 65 and not yet retired.
This is a handy way to help balance your super between you, which becomes especially relevant for the transfer balance cap strategies we cover later.
| Example: Splitting contributions to even out balances | |
|---|---|
| Who | Matt (54) and Sally (50) |
| Their situation | Matt has $1.9 million in super, Sally has $600,000. |
| The strategy | Matt splits 85% of his $30,000 concessional contribution to Sally each year. |
| Why it helps | The transfer balance cap ($2 million, rising to $2.1 million from 1 July 2026) limits how much each person can move into tax-free pension phase. Growing Sally’s balance now means they can shelter more of their combined super in pension phase once they retire. |
| How | Matt completes the ATO contribution-splitting form with his super fund, this needs to be done fresh each financial year. |
Government co-contributions
If you’re a low or middle-income earner, the Government may be willing to top up your super for you.
You may qualify if you’re under 71, earn less than $62,488 in 2025–26, and at least 10% of your income comes from employment or running a business.
| Income (per year) | Contribution required | Maximum co-contribution |
|---|---|---|
| $47,488 or less | $1,000 | $500 |
| $47,489 – $62,488 | Any amount | Reduced proportionally |
| Over $62,489 | — | Nil |
The best part? You don’t need to apply, the ATO pays the co-contribution automatically after you lodge your tax return. Just remember that income for this test includes assessable income, reportable fringe benefits, and reportable employer super contributions.
2. Can You Start a Pension?
Once your money is in super, it generally stays locked away until you reach preservation age and meet a ‘condition of release’. But if your circumstances have changed this year, you might be closer to pension phase than you think.
Common conditions of release include:
- Reaching age 65.
- Being above age 60 and retiring from the workforce, with no intention of working more than 10 hours a week going forward.
- Ceasing an employment arrangement between the ages of 60 and 64.
If you’ve met one of these conditions, you can convert some or all of your super into an Account-Based Pension. The benefit is significant: investment earnings in pension phase are taxed at 0%, and for those over 60, pension income is completely tax-free and doesn’t even need to be included in your personal tax return. It’s important to check your transfer balance cap space, as this limits the amount you can move across to pension phase.
| Examples: Starting a pension after a life change | |
|---|---|
| Clive, 62 | Made redundant, with a super balance of $600,000. He’s lined up a new job starting in two months, but because he ceased an employment arrangement between ages 60 and 64, he can still start an Account-Based Pension on his balance now. |
| Abby, 61 | Worked for two employers and recently stopped working for one of them. With a Total Superannuation Balance of $800,000, she can start a pension on that balance, having met a condition of release. |
| The tax benefit | In both cases, pension earnings are taxed at 0%, and pension income is tax-free once they turn 60. |
| Worth considering | If the pension income isn’t actually needed day to day, it could be re-contributed as a concessional or non-concessional contribution, though it won’t be accessible again until a new condition of release is met. |
3. Drawing Your Superannuation Pension
If you’re already in pension or retirement phase, there’s an important box to tick before 30 June: making sure you’ve actually drawn your minimum pension amount in cash.
The minimum percentage you need to draw depends on your age:
| Age | Minimum annual payment |
|---|---|
| Under 65 | 4% |
| 65–74 | 5% |
| 75–79 | 6% |
| 80–84 | 7% |
| 85–89 | 9% |
| 90–94 | 11% |
| 95 or more | 14% |
This percentage is applied to your pension account balance as at 30 June 2025 (or your starting balance, if the pension began partway through the year). It’s worth contacting your fund now to confirm you’ve met your minimum – there’s no point finding out on 1 July that you fell short.
If you hold a Transition to Retirement Income Stream that isn’t yet in retirement phase, there’s also a maximum withdrawal limit of 10% to keep in mind.
WHAT HAPPENS IF YOU GET IT WRONG
- Account-based pension under the minimum: your pension stops on 1 July 2025 and reverts to an accumulation account, where earnings are taxed at 15% instead of 0%. You’ll need to start a brand-new pension when you realise you’ve missed withdrawing your pension to get back to tax-exempt status.
- Transition to Retirement breach: if you withdraw outside the 4%–10% range, your TRIS stops and all payments are treated as illegal super withdrawals – which can mean ATO penalties and even put your fund’s compliance status at risk. If you spot an error, act quickly.
4. Commonwealth Seniors Health Card
If you’re 67 or older and not receiving the Age Pension, it’s worth checking whether you qualify for a Commonwealth Seniors Health Card. The savings can really add up – think cheaper prescription medicines and bulk-billed doctor visits.
The current income thresholds (effective from 20 September 2025) are:
- Single: $101,105 per year
- Couples (combined): $161,768 per year
One thing that surprises a lot of trustees: the income test doesn’t look at how much pension you actually withdraw. Instead, it applies a deemed rate of return to your super and other financial assets. That means even if you draw a high pension, you could still be assessed as having lower ‘income’ for this test.
Want to check your eligibility? Speak with your Bentleys adviser, or visit Services Australia for more information.
5. Your Key SMSF Obligations Checklist
Beyond contributions and pensions, EOFY is also the right time to make sure your fund’s administration is in order. None of these items are glamorous but getting them right now can save a real headache later – particularly if the ATO ever comes asking questions.
Administration and documentation
- Document all trustee decisions made during the year – things like lump sum withdrawals or changes to your investment strategy.
- Confirm all SMSF investments are held in the name of the trustee(s).
- Review your Fund’s investment strategy to make sure it’s still appropriate, and that this review is documented.
- Reconcile your bank transactions for the year and confirm only legitimate SMSF expenses have been paid.
- Check for any personal expenses that may have been accidentally paid from the SMSF – and correct these immediately if you find any.
- Review for any inadvertent early release of super. The penalties for withdrawing before meeting a condition of release can be significant.
- Check that your asset valuations meet ATO requirements.
- Make sure your transfer balance account reporting is up to date – this has been required quarterly for all SMSFs for transactions since 1 July 2023.
Estate planning and compliance
- Review each member’s Binding Death Benefit Nomination to confirm it’s current, valid, and still reflects their wishes.
- Check that Enduring Powers of Attorney are current and properly registered – incapacity planning is a critical part of managing an SMSF.
- Review estate plans and wills with your lawyer to make sure they line up with your SMSF’s trust deed and pension arrangements.
GET THE HEALTH CHECK – Is Your SMSF in Good Shape for 30 June?
- Use our 2026 EOFY SMSF Health Check to see whether your fund has the key bases covered before the end of financial year.
- Complete the Health Check
6. What’s Changing in 2026
There are some significant changes either already in effect or just around the corner. Here’s what you need to know.
Division 296 is now law
On 10 March 2026, the Building a Stronger and Fairer Super System Act passed Parliament. Division 296, the new tax on large super balances is now law and will apply from 1 July 2026.
Division 296 At a Glance
| Topic | Summary |
|---|---|
| Who it affects | Individuals with a Total Superannuation Balance (TSB) above $3 million. |
| Tax rates | An additional 15% tax applies to realised earnings attributable to the portion of a member’s balance between $3 million and $10 million (total effective tax rate of 30%). An additional 25% tax applies to realised earnings attributable to balances above $10 million (total effective tax rate of 40%). |
| Realised earnings only | The tax applies to dividends, interest, rent and realised capital gains. Unrealised capital gains are not taxed. |
| CGT discount | The standard one-third CGT discount for assets held longer than 12 months continues to apply before the Division 296 calculation is performed. |
| Indexed thresholds | The $3 million and $10 million thresholds are indexed to CPI and will increase in increments of $150,000 and $500,000 respectively. |
| Personal tax liability | Division 296 is imposed on the individual member, not the SMSF. Members can choose to pay the liability personally or release funds from superannuation to meet the obligation. |
| First year assessed | The first assessment year is 2026-27, based on a member’s TSB at 30 June 2027 under the transitional rules. |
| Couples | The threshold applies per individual, meaning a couple could collectively hold up to $6 million in super without either partner being affected. |
| One-off cost base adjustment | SMSF trustees can elect to reset the cost base of fund assets to their market value at 30 June 2026 for Division 296 purposes. This quarantines gains accrued before that date from future Division 296 calculations. The election is optional, applies to all fund assets, and requires current asset valuations as at 30 June 2026. |
What this means for you:
- Review now if you’re close to the threshold: if any member’s balance might exceed $3 million by 30 June 2027, get personalised advice sooner rather than later. Your restructuring options become more limited once you’re already over the line.
- Don’t panic: Division 296 only taxes the realised earnings attributable to the amount above $3 million, not your entire balance, and not all your earnings
For a detailed explanation of how Division 296 works, who it affects and what action may be required before 30 June 2026.
Read our article: Division 296 Tax: Tax Changes Shaping 2026.
Payday Super arrives 1 July 2026
From 1 July 2026, employers will need to pay super guarantee contributions at the same time as wages – within seven business days of each payday, rather than quarterly.
For a detailed explanation of how Payday Super affects SMSF trustees and what steps your fund should take before 1 July 2026, read our article Payday Super Is Good News For SMSF Trustees – As Long As Your Fund Is Ready To Receive It.
- If you’re an employee: your super gets invested sooner and starts compounding from payday, rather than sitting idle for up to three months.
- If you’re an employer: make sure your payroll systems are updated before 1 July 2026. The ATO will have real-time visibility of late or missed contributions from day one.
- If you’re an SMSF member who’s also an employee: double-check your employer has your fund’s correct bank account and ESA details to handle the new payment timing, and confirm your SMSF’s bank account is NPP-enabled (able to receive payments via Osko or PayID), this becomes a requirement for receiving employer contributions from 1 July 2026.
Contribution caps are rising from 1 July 2026
The familiar caps are about to get a boost. Here’s how 2025–26 compares to what’s coming:
| Cap | 2025–26 | From 1 July 2026 |
|---|---|---|
| Concessional (before-tax) | $30,000 | $32,500 |
| Non-concessional (after-tax) | $120,000 | $130,000 |
| NCC 3-year bring-forward | $360,000 | $390,000 |
| Transfer Balance Cap | $2.0M | $2.1M |
| Super Guarantee rate | 12% | 12% (unchanged) |
TIMING DECISIONS TO THINK ABOUT
- 2020–21 unused caps expire 30 June 2026: there’s no extension. If you’re eligible, use them this year.
- Bring-forward timing: should you contribute $360,000 before 30 June, or wait for the $390,000 cap from 1 July? It’s worth getting advice on your specific situation.
- Back in the game: if your balance has previously been too high to make non-concessional contributions, the transfer balance cap rising to $2.1 million from 1 July 2026 might bring you back into eligibility.
NCC bring-forward thresholds from 1 July 2026
Once the transfer balance cap take effect, the bring-forward thresholds will also shift:
| TSB at 30 June 2026 | NCC bring-forward in 2026–27 |
|---|---|
| Under $1.84M | $390,000 (3-year bring-forward) |
| $1.84M to under $1.97M | $260,000 (2-year bring-forward) |
| $1.97M to under $2.10M | $130,000 (current year only) |
| $2.10M or more | Nil |
7. Total Superannuation Balance and Key Thresholds
You’ll have noticed your Total Superannuation Balance, or TSB, coming up again and again throughout this article. That’s because so many contribution strategies hinge on this one number.
Your TSB is simply the combined total of every super balance you hold, across every fund – not just your SMSF. Most of the strategies above depend on your TSB at 30 June 2025.
| TSB threshold | What it affects |
|---|---|
| $500,000 | Eligibility to use unused carry-forward concessional contribution amounts from the previous five financial years. |
| $1,760,000 | Members below this threshold may be eligible to trigger the three-year non-concessional contribution bring-forward rule and contribute up to $360,000.** |
| $1,880,000 | Members below this threshold may be eligible to trigger the two-year non-concessional contribution bring-forward rule and contribute up to $240,000.** |
| $2,000,000 | Members below this threshold may be eligible to make a non-concessional contribution of up to $120,000, subject to the bring-forward thresholds.** Members with a TSB of $2 million or more cannot make non-concessional contributions and are not eligible for spouse contributions or government co-contributions. |
| $3,000,000 | From 1 July 2026, balances above this threshold may be subject to Division 296 tax. |
Note: The General Transfer Balance Cap will increase from $2.0 million to $2.1 million on 1 July 2026, which will also affect non-concessional contribution thresholds from 2026-27.
You can check your TSB any time through myGov – ATO online services – just make sure you include every super account you hold across every fund.
A FEW DEFINITIONS WORTH KNOWING
- Work test: you need to work at least 40 hours of paid gainful employment within any consecutive 30-day period during the financial year. This is required for personal deductible contributions if you’re aged 67 to 74.
- Condition of release: this includes reaching age 65; reaching 60 and retiring from gainful employment; ceasing employment between ages 60 and 64; or, in some cases, financial hardship, health or compassionate grounds.
- Transfer balance account reporting: required quarterly for all SMSFs, for transactions since 1 July 2023.
Speak with our Bentleys SMSF Specialists
The rules covered in this article are complex, and the right strategy always depends on your personal circumstances. Contact your Bentleys adviser before 30 June 2026 to make sure you’ve captured every opportunity available to you.
All information contained in this article is general in nature only and does not take into account your personal objectives, financial situation or needs. You should consider whether any of this information is appropriate to you before acting on it and seek personal financial advice before making any investment decisions.