Category: Superannuation advice

Make the most of super before 30 June with smart contribution strategies that can reduce tax, grow retirement savings, and protect your family in a tax-effective way.

Concessional Contributions

Personal contributions where you lodge a Notice of Intent to claim a tax deduction can reduce your taxable income and may even shift your marginal rate. It is also worth checking whether your employer and personal concessional contributions are on track to make the most of the 2025/26 concessional contributions cap of $30,000.

Non-concessional Contributions

After-tax money into super that grows in a low-tax environment. If eligible, you may be able to contribute up to $120,000 this financial year or bring forward up to three years of contributions for a total of $360,000.

Spouse Contributions

If your spouse earns a low income or is not working, making an eligible after-tax contribution to their super may help build their retirement savings and may entitle you to a tax offset of up to $540, subject to eligibility criteria.

Children’s Super

Money to your kids so they can build their balance early and positioning them for the First Home Super Saver Scheme when the time comes.

Life Insurance Inside Super

Contributions can effectively fund premiums in a tax-effective structure, protecting your family at a lower after-tax cost and maintain fund balances.

These aren’t set-and-forget decisions – small actions before 30 June can have meaningful, lasting impact.

*This article contains purely factual information and/or general advice and does not constitute personal financial product advice.  The content of this article does not take into account your personal objectives, financial situation or needs and you must determine whether it is appropriate to your situation.  We recommend you obtain financial, legal and taxation advice before making any financial investment decision.

About the Author:

Ben Devenish – Managing Director – Vantage Wealth Management

Ben, commenced work in the financial services industry in 1993 and has held Executive Director, Private Client Adviser, and Responsible Manager (RM) positions since that time. Key responsibilities as Managing Director at Vantage are to manage operational functions to achieve group strategic objectives, stakeholders are engaged to ensure aligned objectives are achieved, and most critically a team-oriented culture is fostered.

He has also been a Private Client Adviser, Responsible Manager, Head of advice WA and held national advice board positions at Shadforth Financial Group over the period from 2005 till 2017. His qualifications include Australian Institute of Company Directors (AICD), Certified Financial Planner ™, London Business School 2018 (Exec MBA unit, Developing Strategy for Value Creation), Bachelor of Economics (BEcons UWA), Graduate Diploma in Applied Finance and Investment (FINSIA), Diploma in Financial Planning (DFP), Self-Managed Superannuation Fund (SMSF) Specialist Adviser and Registered Tax (Financial Adviser) status under the Tax Agent Services Act 2009.

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With the residential property market having leapt hundreds of thousands of dollars over recent years, a common concern for clients is how their kids will ever be able to get enough savings together to make a start.

Many parents want to help but they are often not sure of the best way to do it.

For some, that means gifting cash. For others, it might mean acting as guarantor on a loan or letting their child live at home for longer to save. There is another strategy often overlooked – the First Home Super Saver Scheme (FHSSS).

Why Some Parents Are Using This Strategy

A common concern we hear from parents is:

“We want to help our child, but we also want to know the money is being used for a house deposit.”

That is where the FHSSS can be useful.

Rather than gifting $50,000 directly into your child’s bank account, parents may choose to help fund contributions into their child’s super over time.

Those funds generally cannot be accessed until retirement, death, significant disablement…. OR putting down a first home deposit.

That creates a level of accountability many parents appreciate.

What is the FHSSS?

The FHSSS allows eligible first home buyers (or in this case, parents on their behalf) to make voluntary contributions into super and later withdraw those funds to purchase their first home.

Key limits include:

• Up to $15,000 per financial year
• Up to $50,000 in total
• Plus associated earnings

This can work well for parents who want to help fund their child’s deposit while ensuring the money is largely locked away for a first home purchase – not a European summer or a new car.

For full information, visit the following page:

ATO – First Home Super Saver Scheme

The Tax Benefit?

This is where the strategy can become even more attractive.

These contributions are generally taxed on their earnings at 15% inside super, which may be lower than their personal marginal tax rate if they are earning an income.

For someone earning a higher income, this can create meaningful tax savings while they save for a deposit. A key benefit is that your adult child can then potentially receive a tax deduction benefit for the contributions.

In a recent client example, Jane, a 30-year-old earning $120,000, had roughly $8,000 more available for a deposit by her parents contributing to her super fund, rather than providing her the same amount as cash.

Is it worth considering?

This strategy is not suitable for everyone.

There are rules around contribution caps, eligibility, tax treatment, and timing that need to be managed carefully.

But for parents who want to:

• Help their children enter the property market
• Access potential tax benefits
• Ensure the money is being used for a home deposit

…it can be a practical alternative to simply transferring cash and hoping it gets used wisely.

We regularly help families assess whether strategies like this fit within their broader financial plan, both for parents providing support and children trying to enter the property market.

About the Author:

Luke Pirozzi – Private Client Adviser – Vantage Wealth Management

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Superannuation is often seen as a “set and forget” account, not offering much flexibility or tangible benefits.  In 2024, TAL Australia conducted research outlining that 38% of Australians aged 55+ are concerned about having insufficient funds to cover basic living costs in retirement.

The reality is that superannuation is a powerful planning tool in a landscape of shrinking avenues to optimise tax and transfer wealth to the next generations. Areas getting significant focus across our advisory team with clients include:

• Service, Fee and Performance Analysis: Considering different superannuation platforms and industry fund alternatives
• Withdrawal and Re-Contribution Strategies: Reducing death benefits tax payable by adult children.
• Downsizer Contributions: Considerations of large contributions into your 60s and potentially 70s using property downsizer rules.

The earlier you plan, the more options you have.

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Recent ASIC Report Highlights Challenges in Super Fund Processes

A recent report by the Australian Securities and Investment Commission (ASIC) has shed light on an area where even well-resourced superannuation funds sometimes struggle – the timely processing of death benefit claims. As outlined in the Australian Financial Review (“How super funds treat your money when you die is shameful” 29/03/2025), these findings underscore why professional financial advice can be so valuable in helping people navigate financial systems.

Beyond Investment Returns: The Service Challenge

Australia’s superannuation sector is rightly described as a “national treasure” in the AFR article. These institutions can do well at their core functions – generating reasonable investment returns on passively accumulating super for members. However, ASIC’s investigation into death benefit claims revealed some challenges:

• The reviewed funds showed room for improvement in their death benefit claims processes
• Three-quarters of claims experienced delays that could have been avoided
• Processing times were significantly longer than those achieved by life insurers
• Staff training and record-keeping systems weren’t always optimal
• Some families experienced multiple requests for the same information

These findings highlight how even well-intentioned institutions can struggle with complex administrative processes that fall outside their primary investment focus.

Why This Matters to You

Financial institutions provide essential products – from superannuation and insurance to banking and investments. They’re a crucial part of Australia’s financial ecosystem that we as your advisers need to implement strategic advice. However, these large organisations manage millions of customers and billions in assets, making it challenging to provide personalised service in every situation.

The Value of Having an Adviser in Your Corner

This is where our client representation provides significant value. We engage with financial institutions as your representative, leveraging our industry knowledge to ensure you receive the best possible outcomes. When you have our team work for you, you benefit from:

1. Front of the queue – With us being a licensed advisory business, financial institutions typically address our queries on behalf of clients in a more expedited way through their adviser  support services.
2. Expert guidance through complex processes – Whether it’s insurance claims, super death benefits, or other administrative procedures, we get the paperwork correct, the first time.
3. Access to competitive terms – Our knowledge of market conditions helps us work with institutions to secure favourable Term Deposit rates, competitive home loans, and appropriate investment options.
4. Clear communication of complex information – We help translate technical information about your investments and products into clear, actionable insights.
5. Efficient resolution pathways – Our understanding of institutional processes helps navigate administrative requirements effectively, such as insurance claims.

A Growing Issue

The ASIC report highlighted that as Baby Boomers approach retirement and beyond, the volume of these administrative processes will only increase. The financial system will face growing demands, making professional guidance increasingly valuable.

For families dealing with significant life events, having an adviser who can work effectively with institutions provides peace of mind and practical support.

Our Commitment to You

We recognise that Australia’s financial institutions provide essential products and services that form the backbone of sound financial strategies. Our role is to represent your best interests when engaging with these institutions, ensuring you receive the service and outcomes you deserve.

By standing firmly in your corner while maintaining professional relationships with financial institutions, we help ensure you receive the full value of their products and services you.  Our loyalty lies exclusively with you, even as we acknowledge the important role these organisations play in our financial system.