Superannuation Strategies for 2025

Superannuation remains one of the most effective ways to grow wealth for retirement in Australia. With changes to contribution caps in 2024–25 and new tax rules set for 2025–26, it’s more important than ever to stay on top of your super strategy to maximise benefits and avoid potential pitfalls.

At FMS Group, we help clients across the Central Coast and Sydney’s North Shore navigate the complexities of superannuation, ensuring they take full advantage of opportunities while remaining compliant with upcoming changes.

Take Advantage of Increased Contribution Caps (2024–25)

From 1 July 2024, super contribution caps have increased, meaning you can put more into your super while benefiting from tax advantages:

Concessional (pre-tax) contributions cap has risen from $27,500 to $30,000. These include employer Super Guarantee (SG) payments, salary sacrifice, and personal deductible contributions.
Non-concessional (after-tax) contributions cap has increased from $110,000 to $120,000. If you’re eligible for the bring-forward rule, you may be able to contribute up to $360,000 over three years.

Maximising contributions can help grow your retirement savings faster, especially with the power of compound interest. FMS Group can help you determine the best strategy based on your current financial situation.

Changes to Superannuation Tax Breaks in 2025–26

Looking ahead, the 2025–26 financial year will bring significant changes, particularly for high-balance super holders. The government has announced that from 1 July 2025, earnings on total super balances exceeding $3 million will be taxed at 30% instead of 15%.

While this won’t affect everyone, it’s something to be aware of if you have a high super balance or are working towards a larger nest egg. At FMS Group, we closely monitor these changes and can help you develop a strategy that ensures you minimise tax impacts while maximising your retirement savings.

Review Your Investment Strategy

Your super is an investment, and how it’s invested can make a significant difference to your retirement savings.

If retirement is still decades away, a higher-growth strategy may be suitable. If you’re closer to retirement, you might want a more balanced or conservative approach to protect your wealth.

Key things to review in 2025:

Check whether your super fund is performing well
Ensure your investment strategy matches your risk tolerance
Consider switching funds if fees are too high

A financial planner at FMS Group can review your super strategy and make sure your investments align with your long-term goals.

Plan for a Tax-Effective Retirement

When you reach preservation age (between 55 and 60, depending on your birth year), you can start accessing your super through a pension or lump sum withdrawal – but the tax treatment varies.

Some smart tax strategies include:

Transition to Retirement (TTR) Pension: Allows you to access part of your super while still working, potentially reducing your taxable income.
Tax-Free Withdrawals Over 60: If you’re over 60, any income stream from your super is tax-free, making it an efficient way to fund your retirement.

Tax planning is crucial to maximise your savings and avoid unnecessary tax burdens. Our team at FMS Group can help structure your withdrawals in the most tax-efficient way possible.

Don’t Forget About Superannuation Fees & Insurance

High super fees can eat into your savings, and insurance inside super may not be tailored to your needs.

Compare your super funds fees and investment options
Review your insurance policies within super to make sure they align with your current situation
Consolidate multiple super accounts to avoid paying unnecessary fees

At FMS Group, we help clients assess their super funds to ensure they’re maximising returns while minimising costs.

Make Your Super Work for You

With new contribution caps now in place and upcoming tax changes in 2025–26, now is the perfect time to review your super strategy.

At FMS Group, we make super simple. Whether you’re looking to grow your balance, optimise contributions, or plan a tax-effective retirement, our expert advisors are here to help.