Cost-of-living reshapes how Australians engage with super at tax time

16 June 2025

Australians are feeling the pinch with more than half reporting a negative financial impact from the rising cost of living. Those aged between 30-50 years, who often juggle mortgages and family expenses, are the most affected, with nearly two thirds feeling the economic strain.

In this current economic environment, new research from AustralianSuper reveals a growing appetite to understand the tax benefits associated with super, and it’s helping Australians feel more in control of their financial future.

Australia’s largest superannuation fund asked more than 1,300 members about their levels of knowledge and understanding of the impact of tax on their superannuation. The number of respondents who felt confident understanding super-related tax benefits, increased from 35 per cent to 41 per cent in the past year. This was especially true for younger members aged 15-29, whose confidence increased by 19 per cent.

Despite the growing knowledge, members haven’t necessarily put it into action – with 64 per cent saying they have never claimed a tax deduction for personal (additional) super contributions, taken advantage of catch-up contributions, or utilised spousal contributions or co-contributions.

Only retired members aged 50+ are bucking this trend, with 51 per cent of them having taken advantage of co-contributions, spousal contributions (44 per cent) and salary sacrificing (29 per cent).

With the end of the financial year fast approaching, Australians are prioritising the immediate needs of everyday living over long-term financial planning. More than two-thirds of Australians aged 30-50 plan to use any tax refund they receive to cover everyday living expenses or payments towards debt, while only four per cent plan to make voluntary super contributions.

With nearly one-third of members (30 per cent) still reporting little-to-no understanding of tax benefits tied to their super, AustralianSuper is encouraging all Australians to better understand their super entitlements.

The research shows encouraging signs of a growing appetite for education. Around one third of members want to know more about how to claim tax deductions on personal super contributions (31 per cent) and how super is taxed (28 per cent), and almost one quarter want to understand how to maximise catch-up super contributions (24 per cent).

AustralianSuper General Manager, Retirement, Shane Hancock, says that Australians are under clear financial pressure and making smart, tax effective decisions has never been more important.

“For members, there is a clear connection between understanding how the tax system works and feeling in control of their finances.

“By providing access to the right information and tools, we want to help members feel confident making decisions today that support their financial wellbeing now and into retirement.”

AustralianSuper offers a range of educational resources to support members at every stage of their retirement journey. This includes expert-led education sessions, videos, articles, podcasts, and The Elements of Retirement guide for those approaching retirement. A suite of digital tools and calculators is also available to help with planning, forecasting, goal setting, contributions, and understanding risk tolerance, empowering members to make informed decisions about their super.