December offers a rare pause in the business calendar—a perfect time to review your financial plans. While tax and business strategies often take priority, superannuation strategies for December are just as critical. Strategic decisions now can maximise contributions, improve fund performance, and strengthen your retirement plan before the second half of the financial year accelerates.
Maximise concessional and non-concessional contributions
With the concessional contributions cap increasing to $30,000 and the non-concessional cap rising to $120,000 from 1 July 2024 (ATO, 2024), now is the time to reassess your superannuation strategy. For those with a total super balance under $500,000, there may also be an opportunity to catch up on unused concessional caps from previous years (ATO, 2024).
Review how personal and company contributions are being managed, and confirm that all payments are correctly structured and reported to ensure deductibility. If cash flow allows, consider using retained profits or after-tax income to make additional non-concessional contributions that support longer-term retirement goals.
Avoid waiting until the end of the financial year, when liquidity may be tighter due to tax liabilities or business reinvestment. Super should be part of your mid-year planning conversation. Ensure that contribution decisions are aligned with your cash position and broader financial objectives before locking anything in.
Review super fund performance and structure
Superannuation is not a set-and-forget asset. It’s worth checking whether your fund’s investment mix still reflects your risk appetite, life stage, and retirement goals. Look at long-term performance over five to ten years, rather than short-term returns, and compare fees across platforms to ensure you’re not eroding future outcomes unnecessarily.
For SMSF trustees, this is also a good time to confirm compliance, review asset diversification, and check that your investment strategy and insurance cover are still appropriate. If a rebalance or investment switch is needed, acting before the calendar year resets may offer cleaner reporting and a stronger position heading into the second half of the financial year.
Consider salary sacrifice strategies
Salary sacrifice is a structured way to build super over time while managing your tax position. Even high-income earners can benefit from making consistent contributions throughout the year.
Key points to consider include:
- Cap awareness: Salary sacrifice counts toward the $30,000 concessional contributions cap (from 1 July 2024), alongside super guarantee contributions (ATO, 2024).
- Income smoothing: Regular contributions help reduce taxable income evenly across the year, avoiding large, last-minute top-ups.
- Cash flow alignment: Spreading contributions can ease pressure on cash reserves, especially during EOFY when funds may be needed elsewhere.
- Discipline and habit: Automating contributions through payroll encourages consistency and avoids the temptation to delay.
- Tax planning integration: Evaluate how this strategy fits with your broader tax position and any planned business reinvestment.
- Compliance check: Monitor total concessional contributions to avoid exceeding the cap and incurring additional tax.
Before implementing or adjusting salary sacrifice arrangements, review your current business cash flow and retirement objectives with your adviser.
Align super with broader retirement goals
Superannuation should be treated as part of a coordinated financial plan, not a standalone consideration. For those approaching retirement or planning a business exit, it’s an opportunity to tie super into a broader strategy that supports long-term goals. This includes reviewing whether balances are evenly distributed between spouses to optimise tax-free drawdowns, assessing the right time to commence account-based pensions, and ensuring super works in harmony with other structures such as trusts, companies, and personal assets.
The recent increase in concessional and non-concessional caps adds further flexibility. Business owners, in particular, may benefit from moving profits into super ahead of retirement, creating a more efficient platform for drawing income and managing tax. When super is aligned with succession and estate planning, it can support more effective intergenerational wealth transfer and reduce the complexity of future decisions.
Strategic, not reactive
The benefits of thoughtful superannuation planning aren’t immediate, but they are exponential. Small, well-timed decisions today can significantly expand your financial flexibility in the years ahead. Rather than scrambling to catch up in the final quarter, December offers the breathing space to act deliberately. Use this window to revisit your structure, assess opportunities, and put plans in motion.
Book a conversation with your adviser while there’s still time to make meaningful changes before the end of the financial year momentum takes over.
References
Australian Taxation Office (ATO) 2024, Concessional contributions cap, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/concessional-contributions-cap
Australian Taxation Office (ATO) 2024, Non-concessional contributions cap, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/caps-limits-and-tax-on-super-contributions/non-concessional-contributions-cap
Australian Taxation Office (ATO) 2024, Carry-forward concessional contributions, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/contributions-you-can-make/carry-forward-concessional-contributions
Australian Taxation Office (ATO) 2024, Salary sacrifice arrangements, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/growing-and-keeping-track-of-your-super/contributions-you-can-make/salary-sacrifice-arrangements
Australian Taxation Office (ATO) 2024, Starting an income stream, https://www.ato.gov.au/individuals-and-families/super-for-individuals-and-families/super/accessing-your-super/starting-an-income-stream
Australian Taxation Office (ATO) 2024, Self-managed super funds (SMSFs), https://www.ato.gov.au/self-managed-super-funds
