Superannuation: Building a Retirement That Reflects Your Life’s Work

As we begin the 2025–26 financial year, professionals and business owners have a unique opportunity to align their superannuation strategy with the life they’ve worked hard to build. This isn’t just about saving for retirement – it’s about using super as a strategic tool for tax efficiency, wealth preservation, and legacy planning.

1. Start the Year with Strategy, Not Scramble

The new financial year is the ideal time to reset your superannuation strategy. With the concessional contributions cap now at $30,000 pa, and the carry-forward rule still in play for those with balances under $500,000, there’s real scope to boost your retirement savings while reducing taxable income.

Tip: If you had lower income or paused contributions in previous years, this is your last chance to use unused cap space from 2019–20 before it expires on 30 June 2026.

2. For Business Owners: Super Is Still One Of Your Best Tax Shelters

Whether you’re self-employed, operating through a company, or managing an SMSF, super remains one of the most tax-effective vehicles for long-term wealth. Salary sacrifice, personal deductible contributions, and strategic lump sums can all be tailored to your cash flow and business cycle.

Tip: Coordinate contributions with quarterly BAS lodgements or trust distributions to smooth cash flow and maximise compounding.

3. Watch the $3 Million Super Tax Threshold

From 1 July 2025, balances over $3 million may attract an additional 15% tax on a portion of earnings – even unrealised gains. This is a personal tax, not a fund tax, and will be calculated annually by the ATO.

Tip: Now is the time to review your super structure. Consider splitting balances with a spouse, using recontribution strategies, or diversifying wealth outside of super.

4. Leverage the Downsizer and Bring-Forward Rules

If you’re 55 or older and selling your home, you can contribute up to $300,000 per person into super without affecting your non-concessional cap. Combine this with the bring-forward rule (up to $360,000) and you could contribute over $1.3 million in a short window.

Tip: This is especially powerful for business owners selling a property or transitioning out of a family business.

5. Think Beyond Your Own Super

Super isn’t just about your retirement – it’s a family wealth tool. Consider spouse contributions for tax offsets, in-specie share transfers from executive share schemes, and the First Home Super Saver Scheme for adult children.

Tip: Use super to support intergenerational planning while maintaining tax efficiency.

6. Structure Your Income for Longevity

Retirement could easily last 30+ years. Your super strategy should reflect that. Consider creating tax-free income streams from pension phase, using family trusts or investment bonds for flexibility, and diversifying across asset classes to manage volatility and inflation.

Tip: Plan for healthcare, lifestyle, and legacy – not just survival.

Final Word: Make Super Personal Again

You’ve built a business or a professional career on insight, discipline, and leadership. Your superannuation strategy should reflect the same. This financial year, don’t just contribute – co-ordinate. Don’t just save – Strategise.