![\"Max](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2026\/06\/max-proud-and-super-taxes_8792.png\")
Max Proud has been making extra super contributions and hopes it’ll help set him up for the future. \u00b7 Source: Supplied\/Getty <\/p>\n Max Proud has been making extra super contributions and hopes it’ll help set him up for the future. \u00b7 Source: Supplied\/Getty <\/p>\n
Aussies are being urged not to miss out on a significant superannuation tax break<\/a> as the window to act quickly closes. Super has become a more attractive option<\/a> following the government’s proposed changes to the capital gains tax discount<\/a>, and more Aussies are expected to start piling in.<\/p>\n Max Proud started making extra contributions to his superannuation<\/a> by way of salary sacrificing last year. The 34-year-old construction project manager and his wife, Alice, own two investment properties and decided to seek advice from a financial adviser after relocating from Adelaide to Sydney.<\/p>\n “My parents and Alice’s parents are at that stage where they’re starting to dip into their super, they’re retiring, so it made us think a bit more about it from that perspective,” Proud told Yahoo Finance.<\/p>\n RELATED<\/strong><\/p>\n Following the budget changes, Proud said he was planning to sit down with his adviser and work out a “game plan” for what was next.<\/p>\n That could include developing and subdividing one of their investment properties, and potentially adding more to their superannuation<\/a>.<\/p>\n Days left to take advantage of tax deduction <\/p>\n For the current financial year, the concessional contributions cap is $30,000. This includes employer super guarantee contributions, salary sacrifice and personal deductible contributions.<\/p>\n Personal super contributions are one of the biggest tax deductions<\/a> that Aussies claim, with the latest ATO data showing an average of $18,699 was claimed in the 2023-24 financial year. This was up from $17,380 the year prior.<\/p>\n However, only a relatively small number of Aussies are making personal super contributions. Just under 785,000 individuals claimed the deduction in 2023-24, which was up from 679,000.<\/p>\n Catch-up contribution rules<\/a> allow you to carry forward any unused concession contributions caps from up to five previous financial years and claim them as a tax deduction this financial year.<\/p>\n When added with the current year’s cap, there’s a total of $167,500 in contribution capacity that can be used. It currently goes back to the 2020-21 financial year, and once we hit July 1, that oldest financial year will be gone.<\/p>\n You have to use up the current financial year’s $30,000 cap first, and your super balance needs to have been less than $500,000 on June 30 last year to make use of the rule.<\/p>\n “It’s important to remember that unused caps don’t last forever. If you don’t use it, you lose it,” Vanguard Australia chief of personal investor Renae Smith said.<\/p>\n Story continues <\/p>\n “That makes understanding what you have available, and acting before it expires, critical.”<\/p>\n Budget strengthens appeal of super <\/p>\n AustralianSuper education manager Kim Heironymus said the budget had shone a light on the benefits of super<\/a> and it continued to be a tax-effective environment for Aussies to grow their long-term retirement wealth.<\/p>\n “Compared with investment options outside of super, where earnings are generally taxed at an individual’s marginal tax rate, super is taxed at a concessional rate of up to 15 per cent when members are saving for their retirement,” Heironymus told Yahoo Finance.<\/p>\n “Over time, that difference really adds up, particularly for the young members I meet who can really benefit from the snowball effect of compounding growth.”<\/p>\n Heironymus expects young members, particularly those investing in shares or ETFs<\/a>, will become more interested in their super and consider increasing what they are adding where possible.<\/p>\n “For members nearing retirement, I expect to see more interest in those considering more sizable contributions, as they look to boost their savings in a tax-friendly environment ahead of retirement,” she said.<\/p>\n HESTA research found 58 per cent of its members were not planning to take advantage of any super tax benefits before June 30, with many not clear on the options available or put off due to cost-of-living pressures.<\/p>\n HESTA CEO Debby Blakey said top-up contributions wouldn’t be suitable for everyone, given cost-of-living pressures, but there were other options people could take ahead of the end of the financial year.<\/p>\n “Small steps can help, like seeing if you’re eligible for the government co-contribution<\/a>, consolidating old accounts or considering your retirement strategy. Understanding where you are now and where you are heading builds confidence and supports future decision-making,” she said.<\/p>\n For those who do make extra super contributions, the timing is important as contributions will need to be received by your super fund by June 30 to count towards the current financial year.<\/p>\n It’s worth checking your super fund’s cut-off dates and allowing extra time for BPAY, direct debit or bank transfers to clear.<\/p>\n Get the latest Yahoo Finance news – follow us on <\/strong>Facebook<\/strong><\/a>, <\/strong>LinkedIn<\/strong><\/a> and <\/strong>Instagram<\/strong><\/a>.<\/strong><\/p>\n You may be able to use the carry-forward rule to use any unused concessional contribution caps from the last five years back to 2020-21. \u00b7 Source: Getty <\/p>\n