Ipswich Retirees: 5 Smart Tax Moves Before You Exit Work

If you’re preparing to retire in the next 12 months, you’re in the perfect position to make some final, smart financial decisions. With the right guidance, you can legally reduce tax and make your savings go further. This guide, Ipswich Retirees: 5 Smart Tax Moves Before You Exit Work, is written for Ipswich local looking to retire wisely in 2026. Let’s walk through five practical, ATO-compliant strategies that could save you thousands in tax while setting you up for a stress-free retirement.

Let's get started.

1. Boost Your Super with Final Concessional Contributions

Before you finish work, make the most of your concessional super contributions. These include pre-tax contributions like salary sacrifice and personal deductible payments, capped at $27,500 for the 2026 financial year. If you’ve got unused contribution space from previous years, you may be eligible for catch-up contributions using the carry-forward rule — potentially allowing you to contribute more. This reduces your taxable income and helps grow your super in a low-tax environment.

Why this move works for Ipswich retirees:

• Contributions are taxed at 15%, not your marginal rate
• Reduces your taxable income in your final working year
• Increases retirement savings while lowering current tax
  
  

2. Use the Downsizer Contribution Strategy

If you’re planning to sell your home after retirement, you could qualify for the downsizer contribution. This lets you contribute up to $300,000 per person into super from the sale of your main residence. You must be aged 55 or over, and the home must have been owned for at least 10 years. Downsizer contributions don’t count towards your concessional or non-concessional caps. This strategy is popular with Ipswich retirees who are looking to transition from family homes into something smaller and more manageable.

Why downsizer contributions make sense:

• Get more money into your super tax-free
• Does not require you to meet the work test
• Can be made even after you stop working

3. Review Investments and Manage Capital Gains

Before you retire, it's smart to review your investment portfolio and assess any capital gains or losses. If you’ve made profits on shares, property, or managed funds, selling assets before you stop earning could save you tax. You may also be able to offset capital gains with losses or time sales across financial years. Once you're retired and your taxable income drops, you lose the chance to strategically reduce your overall tax exposure. Working with a local accountant can help you make the right call here.

Smart reasons to review your investments now:

• Time gains and losses for optimal tax outcomes
• Avoid a spike in capital gains tax after retirement
• Prepare your portfolio for long-term income needs

4. Convert Your Super to a Tax-Free Income Stream

Once you’ve met a condition of release and reached preservation age, you can convert your super into an account-based pension. If you're 60 or older, your pension payments will likely be completely tax-free. Investment earnings inside your pension account are also tax-free, which makes this transition a key retirement tax move. This lets your money continue to grow while supporting your lifestyle without adding to your tax bill. Make sure you set this up through your super fund with the help of an adviser or accountant.

Why this move benefits Ipswich retirees:

• Income from pension phase is tax-free after age 60
• Tax-free investment returns within the fund
• Gives you regular, structured payments

5. Prepay Deductible Expenses Before Retirement

If you're still earning a healthy income, now’s the time to prepay any tax-deductible expenses. Once you retire and your income drops, deductions may no longer reduce your tax as much. Prepaying things like income protection insurance, financial advice fees, or professional memberships before 30 June can bring the deduction into your final year of work. This strategy is especially useful if 2026 is your last working year and you want to minimise your final tax bill.

Good expenses to prepay include:

• Income protection premiums
• Financial or legal advice costs
• Professional memberships or licences
• Work-related education or subscriptions

FAQs: Ipswich Retirees: 5 Smart Tax Moves Before You Exit Work

What’s the best tax-saving strategy before retirement in Ipswich?
Boosting your super with concessional contributions is one of the most effective ways to reduce tax and grow retirement savings before exiting work.

Can I contribute to super after I retire?
Yes, you can — especially through downsizer contributions, which have no age limit and don’t require you to meet the work test.

Is the income from my superannuation pension taxed?
No, if you're over 60 and draw from a retirement-phase pension, the income is generally tax-free.

Should I sell investments before or after I retire?
Selling before may help you better manage capital gains, especially if you can offset profits against your final-year income or realised losses.

What’s the downsizer contribution limit in 2026?
You can contribute up to $300,000 per person (or $600,000 for a couple) from the sale of your primary residence into your super fund.

Do I need to meet a work test to contribute to super?
Only for certain types of contributions and age brackets. Downsizer contributions and some non-concessional types don’t require a work test.

Why should I prepay expenses before retiring?
Doing so brings forward deductions into your final year of income, making them more effective at reducing your tax while you’re still earning.

Summary: Plan Smarter, Retire Better

Retirement is the perfect time to reflect — but it’s also the perfect time to act. By following the advice in Ipswich Retirees: 5 Smart Tax Moves Before You Exit Work, you can legally reduce your tax, maximise your super, and enter retirement with confidence. These strategies — from boosting super contributions and downsizing your home to managing capital gains and prepaying expenses, can make a measurable difference in your financial security.

At Skyways Accountants Ipswich, we specialise in guiding Ipswich retirees through this critical life transition. Let us help you retire smart, not just soon.

Call us today on 0400 348 482 or visit our website to book your retirement tax planning session.