How to use super contribution to reduce CGT

 Author: KaraATO(Community Support)Community Support

14 Aug 2025

Hi @Ponp,

You may be eligible to use the carry-forward concessional contributions rule if your total super balance is under $500K at 30 June of the previous financial year. This allows you to use unused portions of your concessional cap from up to five previous years. From 1 July 2024, the annual concessional contributions cap is $30K.

If you sell an asset and make a capital gain, you may be eligible for a 50% CGT discount if you’ve held the asset for more than 12 months and you're an Australian resident for tax purposes.

Making a personal concessional contribution to super in the same financial year may reduce your taxable income, which could lower the tax payable on the capital gain. These contributions are taxed at 15% inside super.

After 65, you can start a super income stream (pension phase), even if you’re still working. In pension phase, earnings and capital gains on assets supporting the pension are generally tax-free. However, you must withdraw a minimum amount each year (5% for ages 65–74), and you can't make concessional contributions to a pension account, only to an accumulation account.

Since your situation includes things like timing your asset sales, planning contributions, and managing your super balance, it’s best to speak with your accountant or a qualified adviser who can provide professional financial advice.

Reply0 likes

• Report as inappropriate